The amount of interest collected when a borrower pays off his or her mortgage loan is determined by:
- the type of mortgage loan, and
- the date of the payoff.
The interest due Fannie Mae, however, also will differ depending on the remittance type of the mortgage loan.
The various calculation methods for mortgage loans that are actual/actual remittance type are shown in the following table.
Note: A full month of interest will be based on a 360-day year, while a partial month's interest will be based on a 365-day year.
For mortgage loans that are scheduled/actual remittance type and for mortgage loans that are scheduled/scheduled remittance type, the type of mortgage loan and the date of the payoff has no effect on the interest due Fannie Mae. The calculations to be used for scheduled/actual and scheduled/scheduled remittance types are shown in the following table.
For more information see Investor Reporting Manual Chapter 2-04, Reporting Specific Payment Transactions to Fannie Mae (02/14/2018)