Interest Adjustment Date
The interest Adjustment Date is a date from which interest on the mortgage advanced is calculated for regular payments. This date is usually one payment period before regular mortgage payments begin.
For example, if a mortgage is advanced on August 15 to be paid on the first day of each month, September 1 would be the interest adjustment date and July 1 the first payment date. On September 1, the borrower would be required to pay the interest that has accrued on the principal since the date of the advance (August 15).
Interest due between the date the mortgage is advanced and the IAD is due on closing.
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