Mortgage – do you pay by due-date?
Question: It doesn’t work this way. Interest for the entire life of the loan on >a typical mortgage in the US is calculated on the day you sign your >note and amortized over the whole life of the loan; and it does not >depend on when you make payments.
Answer: You’re right, I stand corrected. My other postings in this thread are incorrect. While a home equity loan (which is what I converted to when I refinanced) works as I’ve described, a mortgage does not. I went and did the research and confirmed that there is no difference for a standard mortgage between paying on time and paying within the grace period.
I apologize for the incorrect information in my previous postings.
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Filed under: Home Equity Loan
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