Bankers looooove their acronyms:) Your interest adjustment date is the day your first payment is made after your mortgage funds are advanced. If the period of time between you getting your mortgage and you making your first payment is shorter than your regular payment schedule, then the first payment out of your account will be an interest adjustment payment. It will be an “interest only” payment for the number of days that you’ve had the mortgage until the first payment is due. It sounds big and scary, but don’t fret – they are completely normal!
For example, let’s say you move in and get your mortgage on the first of the month and you want to make your mortgage payments monthly, on the 10th of each month. In this case, you’d make your interest adjustment payment on the 10th since it wouldn’t be fair to charge you a whole month – you’ve only had the mortgage for 10 days. That payment will be the interest only portion of your mortgage payment for the 10 days you’ve had the mortgage.
Clear as mud? Just call us. This is so much easier in person. 🙂