Kanetix Forum

Prepaid interest, also known as an interest adjustment period, is the amount of interest that accrues between the date your loan closes and the date that your first payment is made.  This is required to be paid by your lender upfront so it is referred to as prepaid interest.

Paul Sidhu, Principal Mortgage Broker at KTX Financial Ltd.

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I've got another question for you....Can you please explain 'prepaid interest'? Thanks :)

Thank you very much Paul!