Rentana Knowledge Base

Real estate financing involves various interest calculation methods that impact how loans are structured and repaid.

The 365/30 amortization schedule is a unique approach. In this method, the loan interest is calculated on a 365-day year basis, but payment calculations assume 30-day months.

This calculation method can affect payment terms and interest income. Unlike other methods, the 365/30 method creates a distinct balance. It can influence cash flow analysis by slightly altering how payments are made over the loan term, impacting both interest and principal amounts. The method’s structure requires careful consideration when evaluating loan options in the real estate market.

For real estate investors and homeowners, understanding how these payments affect their financial strategy can provide a competitive edge.

By evaluating the differences between 365/30 amortization and other forms such as 30/360 or 365/365, they can make informed decisions that align with their financial goals.