What Is The Interest Adjustment Date?

The Interest Adjustment Date (IAD) is used the calculate the amount of interest between the date your mortgage funds and the date of your first regularly scheduled payment. 

For example, let’s say you bought a new home and the closing date was June 15th.  This is the day your Lawyer will need to transfer funds to the seller.

However, your first mortgage payment isn’t actually paid on June 15th.  You’ve chosen monthly payments beginning on July 1st.  You will need to pay 15 days (June 15 – June 30th) of interest since the funds have already been released.

The interest adjustment payment is set by your lender and is almost always the day before your first mortgage payment is scheduled to come out.  The easiest way to pay is on your closing date by paying your lender cash or having them deduct it from your mortgage loan before it is advanced to you.