This is the amount of interest you owe from the day your loan funds to the end of the month. Here's an example: If you close on the 15th of January and your interest is $21 per day, you would pay 16 days * $21=$336 for interest for the month of January. Your first payment would be due on March 1st and would pay principal and interest for the month of February.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). prepaid interest. Retrieved September 23, 2026, from http://smartdefine.org/prepaid_interest/definitions/1160968 |
| Chicago | Barry Goldsmith. 2010. "prepaid interest" http://smartdefine.org/prepaid_interest/definitions/1160968 (accessed September 23, 2026). |
| Harvard | Barry Goldsmith 2010, prepaid interest, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/prepaid_interest/definitions/1160968>. |
| MLA | Barry Goldsmith. "prepaid interest" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/prepaid_interest/definitions/1160968> |