Prepaid Interest:

Interest collected usually at the time of closing when the closing occurs at a date where less than a full interest period is between the date of closing and the date used where the normal loan amortization period starts. Exec-Amort™ Loan Amortization Plus for Windows™ will automatically calculate the prepaid interest charge. The interest method used to calculate the prepaid interest charge is determined with the ODD DAY calculation methods as follows: