Mortgages- 360 or 365 days/year?

I read that the standard for banks used to be to put mortgages on
a 30 day a month X 12 month plan which totals 360 days instead
of 365 days. With weekly payments now possible, some
mortgages are now counted on the regular 365 days.

Has anyone heard of this and what difference does it make?


Great question. I do not have an answer for you. Since no one else seems to either...just call a local mortgage company and ask them.

If you get an answer...share it with us as I am confident many would like to know.

I have heard of it...generally I think you are looking at a slightly higher effective rate with a 365 day calculation. (I'm sure someone else here can explain in detail)

As Bobby said, talk to your lender and get an amortization schedule and you can compare it to the normal calculation that most financial calculators produce.

Thanks guys,

I'll ask my buddies in banking and share their responses with you.
I should've asked them first but as I stumbled on this forum the
question was still fresh on my mind. Believe it or not, the author
of the book I was reading mentioned this as being something to
look at but never explained what the difference was. Many
personal finance books are pretty bad.