Business and Personal Finance Dictionary

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• PREPAID INTEREST
  
  This is the amount of interest you owe from the day your loan funds to the end of the month. Here's an example: If you close on the 15th of January and your interest is $21 per day, you would pay 16 days * $21=$336 for interest for the month of January. Your first payment would be due on March 1st and would pay principal and interest for the month of February.
  
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