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Mortgage interest
proration is the daily interest multiplied by the number of days
from settlement (including the date of settlement) to the first day
of the following month. The daily rate of interest to be charged by
the lender is usually shown on various forms, such as Regulation Z
and RESPA or you can calculate the daily tax from this site.The online calculator below determines the
monthly payment amount for a fixed-rate and interest-only loan to
help you comparison the two loan amounts.
| Change the loan amount
to the right and then click Calculate. |
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Lenders collect enough money at
closing to cover the interest owed from the closing date until the
next payment period. This is called proration of interest. Make sure
that you keep a record of this figure. At the end of the year, the
lender will send you a 1099 form (for your income tax filing) which
indicates the amount of interest you paid for the year.
We ask that if you like this software,
that you add one of the following links to your website:
Amortization
Software
Generate fixed, variable or
interest-only amortization schedules.
Mortgage Calculators
Track
loans with ease. Add, edit, or delete to manage irregular payments.
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