This is how a lease option should work: After securing the go-ahead from a mortgage broker and before moving in, your potential buyer will give you a healthy, nonrefundable deposit to go toward the down payment of the house -- typically, 3 to 5 percent of the purchase price.
The amount of interest that accrues on your loan is determined by a simple daily interest calculation: Your current principal balance Ã The number of days since your last payment Ã Interest rate factor = interest rate Ã· 365.25 (number of days in a year) = Your daily interest rate.
Calculating per diem interest on your mortgage is easy. Per diem interest is interest on a mortgage loan which is calculated for one day. While interest is always paid in arrears when making mortgage payments, there is a time when a borrower pays it in advance. This advance payment is done at the closing of a mortgage loan.