If I have a spare $5000 for the time being is it worth putting in my mortgage account for 28 days of the month to save on interest?
Say the loan balance is $50k and so the $5k can put it down to $45k but for only 28 days of the month.
Alternatively if the interest is calculated on the 9th of the month and the $5k has only been in there for 9 days does this make any impact?
I guess my question is about how does interest get charged - is it daily and all the daily amounts add to a monthly charge or is it based on the balance on the payment date only?
For the sake of this question assume offsets and any other alternative arrangement is not possible. I am purely asking about a temporary deposit only.
Thank you!
Say the loan balance is $50k and so the $5k can put it down to $45k but for only 28 days of the month.
Alternatively if the interest is calculated on the 9th of the month and the $5k has only been in there for 9 days does this make any impact?
I guess my question is about how does interest get charged - is it daily and all the daily amounts add to a monthly charge or is it based on the balance on the payment date only?
For the sake of this question assume offsets and any other alternative arrangement is not possible. I am purely asking about a temporary deposit only.
Thank you!