Simple-interest real estate loans offer savings

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DEAR BOB: I have an adjustable-rate mortgage. The payment is due on the 15th day of each month. If I make my payment by the fifth of the month, will I be saving money because the interest calculation for the following month will be at a lower principal amount? Does it make a difference or should I let my money sit in my bank and earn whatever interest they pay? – Diego M. DEAR DIEGO: If you have an amortized mortgage with the monthly payment due on the first day of each month, but with a 15-day grace period, there is no advantage paying before the 15th of each month. But never be late. Purchase Bob Bruss reports online. If your payment is received on the 16th day of the month, the late charge applies. At today's ultra-low bank interest rates, it makes no sense to wait until the 15th day to make your mortgage payment. However, if you have a "simple interest mortgage" where interest is computed on a daily basis, then it pays to make your payment on or before the due date, such...