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.
When is a check considered stale dated and what if the bank pays the item after that time period? The Uniform Commercial Code, section 4-404, has effectively eliminated the old concept of stale dates on checks. However, the status of a check does change somewhat once it is 6 months old. If a check that is more than 6 months old is presented to the paying bank for payment, the paying bank may refuse to pay it without being liable to its customer (the drawer of the check) for so refusing. It may also pay the check if it does so in good faith.