WTF is per diem interest?

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Photo by Sarah Chai

Per diem interest is the dollar amount you pay in interest on your mortgage per day.

This is how it is calculated.

One way is to take your interest rate, divide it by 365 and multiply it by the principal balance of your mortgage.

An example:

3% interest rate for a $300,000 mortgage is .03/365 x 300,000 or $24.66 per day.

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Jeffrey Loyd

Jeffrey Loyd

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Licensed Mortgage Lender — CA, CT, FL, NJ, PA & TX. For today’s rates: https://getarate.com/jeffrey-loyd/. NMLS ID: 410097