Home arrow Mortgage Forums arrow Looking for Mortgage again arrow

daily simple interest

Author Message
cindy

Guest







Post Posted: Wed Dec 15, 2004 5:35 pm    Post subject: daily simple interest
Like 0
Dislike 0

how does this work: If you pay after the due date are you actually paying additional interest and if so can you pay off your loan on time.
Icon Mini Profile Jessica
Jessica
Community Mentor
Community Mentor



Joined: 08 Jun 2004

Posts: 808
Location: OHIO
435.83 Dollars($)
Post Posted: Wed Dec 15, 2004 8:07 pm    Post subject:
Like 0
Dislike 0

Hi Cindy,
Firstly, you must get this clear that you can pay the amount after the due date, it is not considered as 'late', it is only 'overdue'. It will not affect your interest rate, nor your loan term.You will be asked for a late charge at the end of the deal.It is only at the assessment table that you need to pay this amount.
If you have further queries feel free to ask us, We are always there to answer them.
Thanking you,
Jessica
Icon Mini Profile jameshogg
jameshogg




Joined: 20 Dec 2005

Posts: 10164
Location: Nevada
944.24 Dollars($)
Post Posted: Tue Feb 07, 2006 2:04 pm    Post subject:
Like 0
Dislike 0

In daily simple interest method the interest is calculated on daily basis and the amount of interest that is due varies with each mortgage payment as it depends on the number of days that have lapsed in between the payments.

James
Rhonda

Guest







Post Posted: Tue Feb 07, 2006 2:15 pm    Post subject:
Like 0
Dislike 0

This method is very similar to the simple interest method, the difference being that the interest is calculated on the actual balance each day.

Here the loan balance is reduced on the same day the payment is received unlike the simple interest method where the loan balance gets reduced on the due date after the after the payment is made.

Thanks,
Rhonda
Stevenbahia

Guest







Post Posted: Mon Jun 14, 2010 1:45 am    Post subject: Tenant agreement
Like 0
Dislike 0

I have a tenant agreement which states a daily charge of 6% can be incurred on late payment of rent. If a amount of £395 was due on the 21/05/10 and still has not been paid, how would this be calculated?
Icon Mini Profile jerry
jerry
Moderator



Joined: 17 Oct 2005



Posts: 2619
Location: MICHIGAN
415.87 Dollars($)
Post Posted: Tue Jun 15, 2010 2:41 am    Post subject:
Like 0
Dislike 0

Hi Stevenbahia,

As per the agreement, you will be able to charge 6% interest rate on a daily basis for the late payment. The tenant is 24 days late on his or her payments. As far as I can calculate, 6% of 395 is 23.7. Thus, on a daily basis, you'll be able to charge your tenant $23.7. For 24 days, the amount will be $568.8.

Thanks,

Jerry
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Highlights
Bookmark this page
Share |

Helpful References
Mortgage Guide
Mortgage Terms
Mortgage News
Book Center
Shop and Compare lenders
30 Yr. Fixed Vs. 5/1 ARM


Calculators     [View all]
Are you eligible for loan?
How much you can afford?
Calculate monthly payment
Calculate APR


Financial Tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


Our Community
MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards
Five simple ways to earn money with the Mortgage Community.

MortgageFit on Twitter

Followers (265)








Community Chat

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0
Page loaded in 21.279 seconds.