What is ‘Odd-Days Interest’
Interest that is earned from a mortgage or other loan with closed-end installments that contain a nonstandard payment period. In most cases, the additional interest is added on to the first payment. All remaining payment periods are uniform, assuming the loan has fixed payments and amortizes fully.
Also referred to as “interim interest.”
Explaining ‘Odd-Days Interest’
An example of when odd-days interest is paid is when a mortgage begins in the middle of a month. For example, suppose you get a mortgage on September 20th; you would pay 10 days’ worth of interest to cover the days to the beginning of October.
Further Reading
- On interpreting security returns during the ex-dividend period – www.sciencedirect.com [PDF]
- Managing the financial consequences of weather variability – link.springer.com [PDF]
- Effect of out-of-hospital pediatric endotracheal intubation on survival and neurological outcome: a controlled clinical trial – jamanetwork.com [PDF]
- Is there an intra-month effect on stock returns in developing stock markets? – www.tandfonline.com [PDF]
- The feeling of being watched: lived Confucianism and theatricality in Kuo Pao Kun's mid-1980s monodramas – www.tandfonline.com [PDF]
- Stable factors in security returns: Identification using cross-validation – amstat.tandfonline.com [PDF]
- Investor sentiment in Japanese and US daily mutual fund flows – www.nber.org [PDF]
