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How to Calculate Per Diem Interest on a Mortgage Payoff
Understanding how to calculate per diem interest on a mortgage payoff is crucial for homeowners who are looking to pay off their mortgage early or are refinancing. Per diem interest refers to the interest that is charged for a partial day’s usage of the mortgage loan. This calculation is essential because it ensures that the borrower is only paying for the exact number of days the loan was outstanding during the month. In this article, we will discuss the steps to calculate per diem interest on a mortgage payoff and provide you with a clearer understanding of this financial concept.
