How is the interest calculated on my subordinate loan(s)?
CalHFA subordinate loans are calculated on a simple interest basis. This is accomplished by multiplying the current principal balance times the interest rate of the loan, divided by 365, and times the number of days since the last payment was applied (or the original disbursement date if no payments have been made). Example: If your $3,500 second at 5% was disbursed on March 15, 2002, you have made no payments, and a $100.00 payment is received on June 30, 2002; the interest would be $51.30 [$3,500 times 5% divided by 365 times 107]. The payment would be applied first to interest and then to principal, i.e., $51.30 to interest, $48.70 to principal, with the next interest due from date June 30, 2002, and based on a principal balance of $3,451.30.
Related Questions
- A Partial Claim was executed two years ago, now the mortgagor has re-defaulted on the loan, will HUD subordinate the Partial Claim so the mortgagee can complete a Loan Modification?
- Can I access account information about my subordinate loan(s) through the voice response unit?
- Can CalHFA subordinate loan(s) be "subordinated"?
