Question by **k**: What day of the month is interest applied to a mortgage loan?
Is there a certain day that banks add interest to mortgage loans? I am currently have a mortgage loan with Chase Bank.
Best answer:
Answer by skip742
Read your mortgage. It depends on the terms of the loan.
Add your own answer in the comments!
If you have a typical mortgage loan, interest accrues daily. It is not added all at one time, the balance actually would be higher from one day to the next….and then, when you pay your monthly payment, the amount of interest that has accrued since your last payment is applied to the balance and the remaining funds are applied to principle and possibly to your escrow account (monies held to pay taxes and home owners insurance). Payments on mortgage loans are usually due on the first of each month as an industry standard – with late fees added if the payment is not made on time. Your Note will explain the exact terms of your specific loan – hope this helps with a basic understanding.
every day.