Odd-Days Interest

AAA

DEFINITION of 'Odd-Days Interest'

Interest that is earned from a mortgage or other loan with closed-end installments that contain a nonstandard payment period. In most cases, the additional interest is added on to the first payment. All remaining payment periods are uniform, assuming the loan has fixed payments and amortizes fully.

Also referred to as "interim interest."

INVESTOPEDIA EXPLAINS 'Odd-Days Interest'

An example of when odd-days interest is paid is when a mortgage begins in the middle of a month. For example, suppose you get a mortgage on September 20th; you would pay 10 days' worth of interest to cover the days to the beginning of October.

RELATED TERMS
  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. Installment Debt

    A loan that is repaid by the borrower in regular installments. ...
  3. Gross Interest

    The annual rate of interest to be paid on an investment, security ...
  4. Debt

    An amount of money borrowed by one party from another. Many corporations/individuals ...
  5. Interest

    1. The charge for the privilege of borrowing money, typically ...
  6. Principal

    1. The amount borrowed or the amount still owed on a loan, separate ...
Related Articles
  1. Budgeting

    Will You Break Even On Your Home?

  2. Home & Auto

    To Rent Or Buy? The Financial Issues

  3. Taxes

    Tax Deductions On Mortgage Interest

  4. Home & Auto

    Will Your Home Remodel Pay Off?

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center