Can a mortgage company charge daily interest without the knowledge of the consumer?

UPDATED: Oct 1, 2022

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Can a mortgage company charge daily interest without the knowledge of the consumer?

My mortgage company has been charging me daily
interest on a conventional loan opposed to
monthly. It was not explained or in writing on
any of the closing documents. When I asked
about it I was told that it wouldn’t be
anywhere on any of my paperwork.

Asked on February 7, 2019 under Real Estate Law, Florida


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

The can't charge you more interest than you agreed to pay. But they can calculate it daily, so long as the sum of the daily interest for the year does not exceed the annual interest you agreed to pay. Basically, in taking out the loan, you agreed to pay a certain percentage interest per year; as long as you are not charged more than that in total, it can be calculated and accrued daily.

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