Is the monthly interest on my mortgage computed from the due date or the actual date of payment?

It's usually computed on average monthly balance (i.e. balance each day divided by 30). So, it's usually better to pay early and thus lower the average balance.Is the monthly interest on my mortgage computed from the due date or the actual date of payment?
I think it depends on the lender. On a 1st mortgage, you make regular installment payments that are principal and interest. Whether you pay early, on the due date or within the grace period the payment will probably be allocated to the interest first and then the principal. If you pay early, you are reducing the principal balance early and that will affect the interest computations over time. The affect would be more pronounced if you were making an extra payment each year if you made it in January rather than December.





I have noticed though on my 2nd mortgage when I made a 2nd payment, which I intended to go against the principal, they applied it first to the accrued interest and then principal. The affect was that when the next payment was applied, the bulk of it was applied to principal.





Interest is only so much each year. When it is paid doesn't have anything to do with the amount of interest that is paid. Only the principal balance used to calculate the interest charges per period will affect the amount of interest. Therefore, the sooner principal reductions are made during the life of the loan, the more the interest charges will be reduced over the life of the loan.





Does that make sense? I hope so.Is the monthly interest on my mortgage computed from the due date or the actual date of payment?
If you have a simple interest loan, If the payment is due on the first of each month, it must be received on or before the first. If you go past that date, you are charged add'l interest every day until paid. It's called per-diem. You should request an amortization that will give you a break down between interest/principal.