# Does mortgage interest accrue daily?

**Daily Accrual**

**accrue interest**on a

**daily**basis using the

**mortgage interest rate**divided by 365. Your

**daily interest**would be the same amount

**every day**of the same month and at the end of the month your monthly payment is applied to the total

**interest**for that month.

Then, is mortgage interest calculated daily?

A simple-**interest mortgage** is **calculated daily**, which means that the amount to be paid every month will vary slightly. For example, on a 30-year fixed-rate $200,000 **mortgage** with a 6 percent **interest** rate, a traditional **mortgage** will charge 0.5 percent per month (6% **interest** divided by 12 months).

**compound interest**, so there is no

**compounding**monthly or otherwise. However, they are calculated monthly, meaning you can figure out the total amount of

**interest**due by multiplying the outstanding loan amount by the

**interest**rate and dividing by 12.

Beside above, does mortgage interest accrue monthly?

The standard **mortgage** in the US **accrues interest monthly**, meaning that the amount due the lender is calculated a **month** at a time. The annual **rate**, instead of being divided by 12 to calculate **monthly interest** is divided by 365 to calculate daily **interest**.

Over time, as you pay down the principal, you owe less **interest each month**, because your **loan** balance is lower. So, more of your **monthly** payment goes to paying down the principal. Near the end of the **loan**, you owe much less **interest**, and most of your payment goes to pay off the last of the principal.