Mortgage Lending: 2.3.3.6.3 Daily accrual accounting without compounding
The daily accrual method calculates the amount of interest due after receipt of each mortgage payment based on the actual date the payment is received, rather than using the due date scheduled at the time the loan is originated. Some lenders calculate a daily interest rate by dividing the annual rate by 365.160 These lenders usually then count the actual number of days between payments in order to determine the number of days by which to multiply the daily rate. Others calculate the daily interest rate by dividing the annual rate by 360.