I’ve ever had has always compounded daily and I believe they told her they do. In fact my Wells Fargo statement says right on the front on the right hand side that the interest is figured daily and if I am trying to pay it off to be sure and state principle only on the payment and to pay as early as possible. I’m hoping to start doing that by mid summer 2014.
My second mortgage does, but my first doesn’t. So, I just set aside 1/4 of the amount every week. Every 4 weeks, I make a payment. For the other mortgage, I send in weekly payments and I can see that parts go to interest and parts go to the principal. Over time, I was able to see that the weekly payments paid down a few more dollars each month than the monthly payments did.