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Simple English definitions for legal terms

prepaid interest

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A quick definition of prepaid interest:

Prepaid interest is when you pay some of the interest on a loan before you actually have to. It's like paying for something in advance. For example, if you take out a loan to buy a house, you might have to pay some interest upfront before you start making your regular monthly payments. This can help lower your monthly payments in the long run.

A more thorough explanation:

Prepaid interest refers to the interest paid in advance by a borrower to a lender. It is usually paid at the time of closing a loan or mortgage. This interest is paid to cover the period between the closing date and the end of the month in which the loan was closed.

For example, if a borrower closes a loan on the 15th of the month, they will have to pay prepaid interest for the remaining 15 days of the month. This interest is calculated based on the loan amount and the interest rate.

Prepaid interest is also known as interim interest or per diem interest.

Example: John takes out a mortgage of $200,000 with an interest rate of 4%. He closes the loan on the 20th of the month. The prepaid interest for the remaining 10 days of the month would be calculated as follows:

Prepaid interest = ($200,000 x 4% x 10) / 365 = $219.18

This means that John would have to pay $219.18 as prepaid interest at the time of closing the loan.

prepaid income | prepayment clause

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19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
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