2007-09-20 06:48:10 · 2 answers · asked by demon j 1 in Business & Finance ➔ Personal Finance
Most loans, including first or second mortgages, are simple interest. If it's not paid by the due date, you are charged add'l interest. It's called per diem. If you take out a 30 year mortgage for example, you pay 70% of the interest on the first 15 years of the mortgage because that's how they make their money.
2007-09-20 09:15:58 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Generally......No.
http://www.mtgprofessor.com/A%20-%20Simple%20Interest%20Mortgages/what_are_simple_interest_mortgages.htm
".......borrowers who really get clobbered by the simple interest mortgage are those who pay late. The standard mortgage has a grace period within which borrowers can pay without penalty. On a simple interest mortgage, in contrast, borrowers pay interest for every day they are late."
2007-09-20 14:00:11 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋