It seems like it’s calculated monthly.
So, ignoring early repayment fees, if I had 100k remaining on the capital balance of my mortgage but the interest rate is 5%, I can just pay 100k and the debt is settled?
You owe 100k + 5% interest per month, but because you settled the 100k you no longer need to be concerned about the interest balance?
In: 1
Interest is calculated daily, if your regular payment is on the first, an you want to pay it off on the fifteenth, you’re going to owe the 100k principal plus 15 days worth of interest. I just went through this, typically you’ll need to get a payoff amount from the bank.
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