Mortgage Interim Interest Guide for Closing Costs (2026)
Understand mortgage interim interest: per-diem calculation, closing timing, prepaid interest, and loan closing costs.
Summary
Interim interest covers gap between closing and first payment. This guide explains per-diem calculation and timing.
Key Steps
- 1Understand interim: interest from closing date to first payment date.
- 2Calculate per-diem: annual interest ÷ 365 = daily interest rate.
- 3Multiply by days: per-diem × days until first payment.
- 4Pay at closing: interim interest part of closing costs, prepaid.
- 5Reduce cost: close late in month to minimize interim interest days.