GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Per Diem Interest


Synonyms:compounded daily, daily interest, each day, per day
Filed Under: financial-banking, mortgages
Tags: banking, mortgage
 

Definition of per diem interest

per diem interest
1. The words "Per diem" are Latin for "per day" or "for each day."
2. Interest that is charged daily which usually refers to the partial month's interest that the buyer pays on the mortgage covering the period from the day of closing to the end of the month.

Related Terms and Acronyms:

  • compound interest   Interest that is calculated by adding the interest earned in the current period to the principal and figuring the next period's interest on this "compounded" total amount.
  • compounding method   Used in Bank rate tables. These include: S--Simple interest. A--Compounded annually. H--Compounded semi-annually. Q--Compounded quarterly. M--Compounded monthly. D--Compounded daily.
  • interest (IN, int)   Money paid for the use of borrowed funds, usually expressed as an annual percentage.
      ➥  Bank account transaction code.
  • interest factor   The decimal equivalent for an interest rate on a unit amount for a period of time. Computed by interest rate divided by number of days in a basic year times the number of days accrued.
  • interest rate (IR)   The rate a lender charges an individual to borrow money.
  • mortgage rate   The interest rate on a mortgage loan.
      ➥  You can compare mortgage rates using this website by clicking 'Rates' above.
  • periodic rate   The interest rate in relation to a specific amount of time. For example, the monthly periodic rate is the cost of credit per month whereas the daily periodic rate is the cost of credit per day.

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