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Mortgage Glossary

Interest Adjustment Date

What An Interest Adjustment Date?

The interest adjustment is the date the mortgage term and amortization starts. The interest adjustment date can also be referred to as the pro-rated interest amount based on the a mortgage funding date.

For example, if your mortgage payment is due on the first of each month, and your mortgage closes and is funded on the 15th of the month prior, then there is an interest adjustment between the 15th of the month prior to the first of the next month, when your payment becomes due. The rate of interest remains the same, and the borrower(s) do not pay anything additional, however the interest adjustment date is used to calculate the interest for the specific amount of days between the mortgage advance date and the mortgage payment date