Definition
Interest that has been earned on a loan or deposit but not yet paid or collected.
Example
A payoff statement dated the 18th includes accrued interest for those eighteen days, which is why the payoff exceeds the balance.
Related terms
- Acceleration Clause
- Adjustable Rate Cap
- Adjustable-Rate Mortgage
- Amortization
- Annual Percentage Rate
- Assumable Mortgage
Frequently asked questions
What does Accrued Interest mean in real estate?
Interest that has been earned on a loan or deposit but not yet paid or collected.
How is Accrued Interest used in practice?
A payoff statement dated the 18th includes accrued interest for those eighteen days, which is why the payoff exceeds the balance.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.