Accrued Interest


Definition of "Accrued Interest"

Stacy Priehs
Stacy Priehs O'Connor Realty

Interest that is earned but not paid, adding to the amount owed. For example, if the monthly interest due on a loan is $600 and the borrower pays only $500, $100 is added to the amount owed by the borrower. The $100 is the accrued interest. On a mortgage, accrued interest is usually referred to as negative amortization.

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