daily simple interest

Guest 0.10 Dollars($)

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.

Jessica · Posted: Wed Dec 15, 2004 8:07 pm Post subject:

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

jameshogg · Posted: Tue Feb 07, 2006 2:04 pm Post subject:

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

Guest 0.10 Dollars($)

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

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