How to calculate remaining mortgage balance for payoff
It's the fine details that confuse me! Here's the simpler of my two problems, the second mortgage. Began Oct 7, 2001, $34,000 loan at 5.25%, 30 years, paid monthly. Will pay this off Nov. 8, 2010, when I get another private mortgage. My amortization schedule shows remaining balance of $28,568.12 after my October 7th payment (of $62.49 principal and $125.26 interest). The corresponding figures for the November payment are $28,505.35 balance after a $62.75 principal and $124.99 interest payment. I understand that interest is paid in arrears and principal in advance. So on November 8th, do I simply owe the lender the $28,568.12 balance plus $124.99 interest? Or do I use the interest figure from the Oct figures? And do I owe him for that one day, the 8th, since payments are due on the 7th? Do I need to somehow prorate the principal? Answers to these questions will help me figure out the first mortgage, which I pay on the 13th of the month, and is thus more complicated since the payoff will be on the 8th.