Interest Due
Definition of "Interest Due"
The amount of interest, expressed in dollars, computed by multiplying the loan balance at the end of the preceding period times the annual interest rate divided by the interest accrual period. On a monthly accrual mortgage, interest due is computed by multiplying the loan balance at the end of the preceding month times the annual interest rate divided by 12. Interest due is the same as the interest payment except when the scheduled mortgage payment is less than the interest due, in which case the difference is added to the balance and constitutes negative amortization.
Popular Mortgage Terms
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The house in which the borrower will live most of the time, as distinct from a second home or an investor property that will be rented. ...
A borrower who submits applications through two loan providers, usually mortgage brokers, without their knowledge. Home purchasers sometimes submit more than one loan application as a way ...
The period you must retain a mortgage in order for it to be profitable to pay points to reduce the rate. ...
The highest rate possible under an ARM contract; same as 'lifetime cap.' It is often expressed as a specified number of percentage points above the initial interest rate. ...
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A reverse mortgage program administered by FHA. ...
The lowest interest rate possible under an ARM contract. Floors are less common than ceilings. ...
A clause in the note that allows the lender to demand repayment of the balance in full. A demand clause is even better (for the lender) than an acceleration clause. An acceleration clause ...
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