What is Per Diem Interest?
How to Calculate Per Diem Interest
For the sake of simplicity, we'll assume that your mortgage is $100,000 and your loan rate is 6 ½ % so we would take the following formula (100.000 x .065/12) and come up with $541.66 per month interest. If you closed on March 20, 2009 then you would pay per diem interest of $18.06 per day or $198.66 (11 days x $18.06 per day) at closing and then your first house payment would be June 1, 2009. The per diem interest payment is an interest payment made on the money loaned to you before the payments actually begin.