More details about the available calculation options for odd day and irregular period interest. If you are satisfied with approximations, however, or you want to match other calculators, then set the "Mortgage Closing Date" and "First Payment Date" so that the time between them equals one full period as selected in "Payment Frequency." Example: If the "Mortgage Date" is July 15 and the "Payment Frequency" is "Monthly," then the "First Payment Date" should be set to August 15. This will result in payment amounts and interest charges that do not match other calculators.Īnd that's the point! You do not need to settle for estimates. Long and short first periods impact interest and payment calculations.īy giving users the ability to enter these two dates, this calculator can do penny perfect calculations. Such a scenario leads to what is commonly called a "long initial period" and "odd days interest." (Had the first payment been due on August 1, then the first period would be called an "initial short period.") Your mortgage can require monthly payments, but in reality, you might go to the closing on July 15, and the first payment might not be due until September 1.
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