interest due
Definition
Money owed on a loan that covers only the amount of interest applied to the principal for that month. The interest due on a stand amortizing mortgage loan is calculated by multiplying the loan balance from the previous month times the annual interest rate applied to the loan, which is then divided by twelve. Borrowers paying only the interest due on a loan do not reduce the principal balance; instead the payment covers only the amount of interest that is owed for that month.
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