Interim interest

What is Interim interest?

A short-term payment amount made when a loan is funded. It's the interest due on the loan to cover the number of days from the day the loan is advanced to the beginning of the next month or payment date. For example, if the loan is funded on September 15, 15 days of interest would be paid when the loan closes to cover the period between September 15th and the 30th. The first loan payment in this scenario would be due on October 1.