Home mortgage interest is paid in arrears, not in advance. Unlike most loans, mortgage principal and interest are paid in arrears. This means that when you make your payment on the first of a month--all contemporary mortgage loans are written as of the first of the month--you are paying the previous month's interest.hen you have sold your home or refinance it, the interest in arrears feature may be less attractive. If you close your sale or refinance on the 18th, your mortgage payoff will be higher than your apparent outstanding balance.
June 17, 2009. Finding an old check at the bottom of your drawer doesn't necessarily mean you'll get a boost in your bank account. You generally have six months to cash or deposit a check. If you have one that was written earlier than that, a bank or credit union isn't obligated to honor the item.
The check was 16 months old, which is what is known as a stale dated check. As I have been told, checks older than 90 days are never supposed to be cashed or credited. When I spoke with the bank manager at Sovereign Bank, he said he was really shocked, that cashing a 16 month old check was, as far as he knew, illegal. The check had originally had a stop payment placed on it.