Initial Interest - Mortgage
Initial interest often catches borrowers unaware. Initial interest is a payment that covers the period between completion and the normal date when the mortgage payment is due, e.g. a mortgage maybe completed on the 15th of the month and the first payment fall is on the 28th.
A borrower will therefore have to pay interest for the period between the 15th and the 28th, 13 days' interest. This is an extra cost not always pointed out to borrowers until they have completed.