Posted on: 15th Feb, 2006 10:04am
Daily Simple Interest loan calculation involves a method by which the interest on a mortgage loan is calculated on a daily basis. The loan balance is reduced on the day when the payment is reduced rather than on the day when payment is due.
Under the Daily Simple Interest formulae, the daily interest rate is given by:
Daily Rate= Annual Rate/365
Amount of interest payable each month = Number of days since last payment * principal outstanding balance * Interest Rate factor
Let's take an example where outstanding principal balance is $10000. You've sent in a payment of $170 around 30 days after your previous month's payment. Let's say the interest rate is 8.5% (the interest rate factor is .00022585)
As per the above formulae,
Interest payable each month = 30 * 10000 * .00022585 = $67.7555
Daily Interest = Daily rate * loan balance
Under the Daily Simple Interest formulae, the daily interest rate is given by:
Daily Rate= Annual Rate/365
Amount of interest payable each month = Number of days since last payment * principal outstanding balance * Interest Rate factor
Let's take an example where outstanding principal balance is $10000. You've sent in a payment of $170 around 30 days after your previous month's payment. Let's say the interest rate is 8.5% (the interest rate factor is .00022585)
As per the above formulae,
Interest payable each month = 30 * 10000 * .00022585 = $67.7555
Daily Interest = Daily rate * loan balance
How are you billed for a daily loan that charges daily simple interest if the loan is tied into an index that changes daily. How would you know what your actual payment would be by the due date? In trying to pay the interest early (putting more to principal),.
Hi apps!
Welcome to Forums!
You can calculate the daily simple interest by following the method mentioned in the following link:
http://www.mortgagefit.com/discuss/dailysimpleinterest-loancalculation.html
However, it will be better that you consult the lender from whom you have taken the loan to calculate the interest for you.
Feel free to ask if you have further queries.
Sussane
Welcome to Forums!
You can calculate the daily simple interest by following the method mentioned in the following link:
http://www.mortgagefit.com/discuss/dailysimpleinterest-loancalculation.html
However, it will be better that you consult the lender from whom you have taken the loan to calculate the interest for you.
Feel free to ask if you have further queries.
Sussane
i have an equity loan with a principal balance of $22,180 at 8.24% interest rate rate. the monthly payment is $197.07. i have $500.00 extra monthly apply to the principal. the question that i have is would it be recommended to pay a certain amount daily, weekly, bi-weekly or monthly. i don't want to say what i think that is what has led me to submit my question but will be greatly appreciative to receive suggestion or opinion from someone who went through this and made it through without going crazy.
Hi kapri!
Is it a interest only loan that you are speaking about? If it is an interest only loan, then you can definitely make the payments towards the principal on a monthly basis provided there is no pre-penalty clause attached to the loan.
Thanks,
Jerry
Is it a interest only loan that you are speaking about? If it is an interest only loan, then you can definitely make the payments towards the principal on a monthly basis provided there is no pre-penalty clause attached to the loan.
Thanks,
Jerry
can you tell me the interest rate at the end of August 2008
daily intrest on a balance of $5,114.53 in a thirty day cycle
Hi,
To evi,
It is very surprising to me as to why you want to know the interest rate of August 2008. It will be better if you can explain your question. Do you want to know the current interest rates?
To casper,
I suppose if you Google with "Auto loan daily interest calculators" you will get calculators which will help you in calculating the daily interest.
Thanks.
To evi,
It is very surprising to me as to why you want to know the interest rate of August 2008. It will be better if you can explain your question. Do you want to know the current interest rates?
To casper,
I suppose if you Google with "Auto loan daily interest calculators" you will get calculators which will help you in calculating the daily interest.
Thanks.
I am starting to wonder if different banks compound differently. In otherwards some compound daily and others monthly. The interest we paid this month was calculated by a monthly interest rate of 6.875% But I wanted to calculate how much I was paying daily so I can see what I would save with bi-weekly. Do all banks compound daily interest with mortgages
Hi Guest,
You can contact your lender and check with them whether they calculate the interest monthly or daily. As far as I know, the mortgage interests are calculated on a monthly basis. Check out the following calculator to know how much you can save with the help of a Bi-weekly loan payment:
http://www.mortgagefit.com/calculators/biweeklypayment-saveinterest.html
Thanks
You can contact your lender and check with them whether they calculate the interest monthly or daily. As far as I know, the mortgage interests are calculated on a monthly basis. Check out the following calculator to know how much you can save with the help of a Bi-weekly loan payment:
http://www.mortgagefit.com/calculators/biweeklypayment-saveinterest.html
Thanks
Have you ever heard of a car loan being Daily Simple interest
In a simple interest loan, you pay interest only on the original principal of the loan. There are lenders who may offer you car loans on a simple interest.
why would anyone want to have a simple interest mortgage? what is advantage to homeowner to the mortgage company?
Hi john h!
Welcome to forums!
In a simple interest mortgage, if you make blended payments before the due date, then the total amount of interest over the life of the loan will be lower than a traditional mortgage. However, a simple interest mortgage usually offers no grace period.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
In a simple interest mortgage, if you make blended payments before the due date, then the total amount of interest over the life of the loan will be lower than a traditional mortgage. However, a simple interest mortgage usually offers no grace period.
Feel free to ask if you've further queries.
Sussane
smithsussane please explain what u mean by blended payments. I have a simple interest loan at 10.75 % with a balance of 28,000. I'm trying to send extra payments but they won't apply to principle only. i'm getting no where quick. anyone please give me pointers. thanks
Hi annerbell!
Welcome to forums!
Blended Payment is a repayment scheme where the mortgage payment includes both the principal and interest throughout the term of the loan. You can speak to your lender and check out if he can give you such a repayment scheme.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Blended Payment is a repayment scheme where the mortgage payment includes both the principal and interest throughout the term of the loan. You can speak to your lender and check out if he can give you such a repayment scheme.
Feel free to ask if you've further queries.
Sussane
I am trying to get the daily rate for 4.853% and I think I am doing something wrong. My understanding is tho take 4.853% divide by 365, bu this does not look right.