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.
Discovering an unredeemed check might seem like found money until you consider its expiration date. While some U.S. checks state how long you have to cash them on the check itself, others typically expire in a set number of days after being written. Not only does this encourage responsibility on the part of the check's recipient, it protects the issuer from overdrafts due to lack of funds if a recipient fails to redeem the check before it expires.