More likely I don't get it/am not used to this. Can anyone explain/formulate what I'm told is a "Daily amortized, 5.5%, fixed interest rate loan"?
I've been buying and selling properties for over 25 years. This is the strangest thing I've ever experienced and the escrow company handling this can't seem to explain it in a way that isn't just word-soup. This is a contract For deed, seller financed property and the title company set up the closing and is handling the long-term escrow/amortization of the loan.
The $9 a month is the escrow fee. When I asked them why the interest doesn't tie-out/compute they said it's because it's calculated daily and the days per month change. When I attempt to figure this out / write a formula it's still off by a lot sometimes. At which point they stated, it's probably because i'm using 365 days a year and this assumes uses 360. Furthermore, when I asked where I signed off on a "daily interest amortized loan - whatever that is", the point in my documents where it states this - doesn't actually state anything other than: "5.5% fixed interest rate." I guess I just made an assumption that was amortized "normally". There was an example amortization schedule in our closing documents. I guess I didn't look closely at it, but we did NOT sign or initial it either. It was just a piece of paper we were handed. I didn't notice this until looking at my year-end statement.