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),.
10% per annum is how much per day
Welcome bean,
Your query is not clear to me. Please post your query in details. It will help me as well as other members to offer suggestions regarding your situation.
Your query is not clear to me. Please post your query in details. It will help me as well as other members to offer suggestions regarding your situation.
Welcome bean,
Your query is not clear to me. Please post your query in details. It will help me as well as other members to offer suggestions regarding your situation.
Your query is not clear to me. Please post your query in details. It will help me as well as other members to offer suggestions regarding your situation.
Ok I am trying to determine the pros and cons of daily verse monthly on a fixed rate.
My Financial Inst wants to thank me for making my mortgage pmts in these tough fin times. Other than trying to determine if this will affect my FICO negatively to make this decision, I need to know if losing the daily interest is a disadvantage. The offer clearly states if I had a daily interest it will become a monthly.
What I have is an equity builder loan (pmts every other Monday) and it is daily interest. I have had the loan for 5 yrs (30 yr agreement) and itfixed at 7.837% interest/APR with 301 mos with monthly pmts $1760.40 (which I make pmts of $880.20 every other Monday).
They are offering Fixed rate of 6.625% interest/APR with 360 mos (30 yrs) of with monthly pmts $1399.76. Now this offer only has monthly pmt option.
As far as the equity builder program, I have the opportunity to accesdepartment and pursue it again but there are no guarantees. With the equity builder loan my loan should be paid off in approx. 17 years with the every other monthly pmts and equity builder additional interest discount. So if I accept the offer I may get stuck with it until I can get more equity in my home from an improved economy or time.
So is only a advantage for a daily if you are making more than 1 pmt month?
My Financial Inst wants to thank me for making my mortgage pmts in these tough fin times. Other than trying to determine if this will affect my FICO negatively to make this decision, I need to know if losing the daily interest is a disadvantage. The offer clearly states if I had a daily interest it will become a monthly.
What I have is an equity builder loan (pmts every other Monday) and it is daily interest. I have had the loan for 5 yrs (30 yr agreement) and itfixed at 7.837% interest/APR with 301 mos with monthly pmts $1760.40 (which I make pmts of $880.20 every other Monday).
They are offering Fixed rate of 6.625% interest/APR with 360 mos (30 yrs) of with monthly pmts $1399.76. Now this offer only has monthly pmt option.
As far as the equity builder program, I have the opportunity to accesdepartment and pursue it again but there are no guarantees. With the equity builder loan my loan should be paid off in approx. 17 years with the every other monthly pmts and equity builder additional interest discount. So if I accept the offer I may get stuck with it until I can get more equity in my home from an improved economy or time.
So is only a advantage for a daily if you are making more than 1 pmt month?
In my opinion, it's better to go for monthly payment with a monthly interest rate.
I'm thinking that neither of those interest rates are very pretty in today's economy, and wonder why you're getting stuck with such high rates. I'd shop around for another lender, cease worrying about daily vs. monthly, and simply get a rate more in line with what's being charged in late 2010 for new loans.
If I make payments on the interest for the next three months will I then be obligted to continue making interest payments?
Hi Peter!
Welcome to forums!
You will have to speak to your lender in this regard and take his permission to make interest payments on your mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You will have to speak to your lender in this regard and take his permission to make interest payments on your mortgage.
Feel free to ask if you've further queries.
Sussane
I received Rs 934 per Rs100,000 in the month of december,2010 at the rate of 11% p.a.They have shown annualised rate as 11.57% HOW?
Hi Kazi,
You should contact the person and clarify the whole matter. He will guide you and clarify the whole matter.
Thanks
You should contact the person and clarify the whole matter. He will guide you and clarify the whole matter.
Thanks
i want to calculate a loan interest in daily. if someday the daily installment is not paid, then 2% interest is applied for each day from notPaidDate to checking date(i.e getdate()). If creditor has paid more than his installment in someday, then previous days interest should be deducted from excess amount.
Please tell me a method to calculate interest.
Thanks
Please tell me a method to calculate interest.
Thanks
You can check out the online calculators in order to find out if such a calculator is available.
unpaid principal balance as of 11/1/08 is $95,428.12. Accrued daily (simple) interest at 7.625% from 11/1/98 through 12/29/10. Accrued simple interest equals??? $$$$$?
Contact a CPA and he will better help you in this matter.
It is important that you know the interest rate you get or pay for money. If you know what that true interest rate is, it is easy to make a comparison with other loan or savings sources.
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