A mortgage is awarded before current interest begins to accumulate. This means that you will be in possession of your lender’s money for a period of time and before it recovers money with interest. The interest adjustment allows your lenders to be reimbursed for the interest they should have earned during this period.

The interest adjustment date (IAD) usually falls on the first day of the month following the distribution of your mortgage funds. This is the day from which your interest begins to accumulate. If you have chosen the monthly payments, you will make your first mortgage payment one month after your DAI. If you have chosen bi-weekly payments, you will pay your first mortgage payment two weeks after your DAI

The Interest Adjustment Amount (MAI) is the amount of daily interest accrued from the Closing Date to your Maturity Date. You will pay your MAI as a lump sum during the closing process. This is one of the many closing costs you will need to cover.

For example, if Sam bought a house for $ 200,000 and his closing date is June 15 and his interest adjustment date (DAI) is July 1, what happens to all interest earned between these days? On the closing date, June 15, the lender will advance the mortgage, so that the real estate agent pays the previous owners. Interest accrued between June 15 and July 1 will be pre-calculated and recorded in closing costs, this is the MAY. So, Sam will make his first mortgage payment on August 1st, one month after his DAI.

Why do I have to pay an interest adjustment?

You must pay an interest adjustment when your closing date does not fall on the first day of the month. As most closing dates do not fall on the first of the month, the majority of buyers will have to pay an interest adjustment. On your closing date, your lender advances your mortgage, but technically interest will not accrue until the first of the following month. However, you still have to pay the interest earned between your closing date and the interest adjustment date, which is why you have to pay an interest adjustment amount. The Interest Adjustment Amount is a one-time payment, which is included in your closing costs. Once this is paid, you will start making your regular monthly mortgage payments.

To find your interest adjustment amount

1. Calculate the total mortgage interest rate per year

$ 200,000 x 2.67% = $ 5340 (purchase price x mortgage rate)

2. Calculate the mortgage interest rate per day

$ 5340 ÷ 365 days a year = $ 14.60

3. Calculate the mortgage interest rate for the number of days between your closing date and your interest adjustment date

$ 14.6 x 15 days = $ 219

Even though the interest adjustment amount is very small and occurs only once at the beginning of your mortgage, it is still a closing cost that you will need to consider when buying a mortgage. a house. Make sure you include this in your home buying budget because it is a hidden cost that can easily be forgotten. In addition, the interest adjustment price can vary considerably, increasing or decreasing according to your interest rate. If you want to avoid this cost, schedule your closing date so that it falls on or very close to your interest adjustment date (the 1st of the following month). However, this may not be possible because there are many external variables that affect your closing date.

How can I pay my interest?

Your interest adjustment amount is part of your closing costs and will therefore be paid on the closing date. Another option is to allow your lender to withdraw this amount from your bank account on the interest adjustment date. In some cases, it may also be possible to add your interest adjustment amount to your first mortgage payment.

Looking for more information about mortgages and closing costs?

If you are currently looking for a mortgage and need help, one of your mortgage specialists can help you answer your questions.

The new strategy will raise annual spending on science to 2% of GDP and boost the transfer of knowledge to the productive fabric

The Governing Council has approved the Andalusian Plan for Research, Development and Innovation (PAIDI) 2020, which establishes the framework for scientific and R + D + i policy in the autonomous community for the next five years, with special attention to the economic recovery and the creation of employment. The new strategy proposes doubling the annual investment in innovation and development from 1.03% of GDP in 2014 (latest available data) to 2%, which will amount to 3.574 million in 2020.

Among other objectives, PAIDI proposes to convert the science-technology-innovation system into a motor for socioeconomic development, social and territorial cohesion, business competitiveness, international projection and environmental, cultural and economic profitability. Along with support for basic science, the document establishes measures to bring research closer to the productive fabric, facilitate the transfer of knowledge and encourage the return of research talent.

The document includes 81 actions distributed in five main areas: strengthening and reorganizing the R & D & I system; the optimization of financing with the increase in investment; an integrative governance based on transparency and participation, and an intelligent knowledge economy oriented towards society.

These measures include those linked to human capital, with initiatives such as the development of a program for the return of Andalusian technologists and researchers working outside the community and for the support of consolidated scientists and emerging talents.

In the field of management, reductions in administrative barriers that affect researchers and the revision of the Andalusian System of Knowledge are included to adapt it to current needs. Special attention will also be given to the development of technologies that facilitate reindustrialization, the promotion of the role of applied science and support for SMEs and new Knowledge-Based Enterprises. The plan is completed with a series of measures to consolidate and expand the promotion of scientific excellence through support and incentives to competitive research, of quality and with an international projection.

The preparation of PAIDI, under the coordination of the Ministry of Economy and Knowledge, has had the participation and contributions of experts and regional actors of R & D & I; the councils of the Andalusian Government more linked to this field; the economic, social and knowledge agents; the Andalusian universities; those responsible for the centers and technological parks of the community; the Technological Corporation of Andalusia, and the general public through the public consultation procedure. The text also follows the guidelines of the new European framework program Horizon 2020, the Andalusian Economic Plan 2014-2020 and the ERDF Operational Program of the European Union, as well as the priorities included in the Innovation Strategy of Andalusia 2014-2020 (RIS3) .

The plan approved today will consolidate and expand the innovative and investigative leadership of Andalusia. Since 2002, the community ranks third in national expenditure on annual R & D, with 1,465.7 million euros, behind Madrid and Catalonia. Its business network currently has the support of ten public universities, about 30,000 researchers and about 2,200 research groups, among other resources. Andalucía hosts 11 technology parks, with some 1,500 companies installed and a global turnover of 5,100 million euros, as well as 22 technology centers.

Retirement worries the Spaniards a lot. As the latest study by Aegon points out, ” The changing face of retirement “, 72% of the population foresees that the situation of future generations of retirees will be worse, which may change their current perspective on retirement, which is quite positive. Spaniards are more likely to associate their job retirement with terms such as “enjoyment” (37%), “leisure” (34%) and “freedom” (33%), than with negative terms. Although these are not far from positive, since 22% of respondents chose the word “insecurity”. If this pessimistic trend continues on the future of new retirees, it is possible that this percentage will gain positions, although the solution is simple.

And even though we see the future with more uncertainty and although we want to “enjoy” our retirement moment, there are still very few who already think at this moment and make a financial effort. The same study makes clear that it highlights that only one fifth (19%) of workers have a written pension plan, while 27% have a plan but not in writing. The remaining 55% do not have any pension plan.

All this despite the fact that planning retirement, regardless of age, must always be included among financial objectives, based in particular on how many years savings will last after retirement.

The sooner, the easier

Securing our retirement begins many years before turning 65, in fact, the sooner we start we will achieve better results and in a much easier way. Regardless of age or family situation, saving for retirement should always be a priority financial goal, but the more years left for retirement, the less amount will have to be allocated every month and you can get a higher income or capital to enjoy during this stage of life.

How should we do it? A few simple steps will help us achieve our goals by making a good retirement plan:

Calculate what income we need : We move our financial needs to the future, there are costs that usually disappear, such as mortgage payments or expenses associated with children and their education, but there are new ones such as those related to health, always leave a margin for incidentals.

Estimate our income : Calculate that we will receive for our pension is simple, the Social Security itself offers on its website the self-calculation of the retirement benefit. We must also add other accessory income, such as income from real estate or business benefits.

Calculate the difference : The greater the difference between the benefits and the needs, we will need a greater financial effort. Let’s see this difference both in terms of monthly income and the capital that we would need in total.

Estimate that we would need to save : We move this capital to what contributions we have to make to achieve it, if there are many years left it will be much smaller or we can bet to get more to go far beyond our basic needs.

Choose the product or financial products to achieve our goal: evaluating not only the pros and cons, not only fiscal, but also safety and profitability, for example through an Insured Forecast Plan we will always have our capital assured without giving up the profitability and with tax benefits.

Does the word investment sound complex to you? How do you need to be a millionaire or have studied economics and finance? Perhaps you are dragging the beliefs and habits of your parents and grandparents, who used to collect money for years to pay for a house, a car, or open your business. They probably saw investments as something out of reach, privilege of rich people; so you can understand that their financial habits have been very conservative.

However, in today’s world, continuing with those beliefs would be one of the worst mistakes you could make in your life. The technology available to all allows us to access an infinite number of opportunities that our parents and grandparents did not have.

1. Investment funds

The investment funds allow to generate returns on our savings. There are them in the short, medium or long term. An investment fund is made up of different people who decide to invest, and as a whole, obtain better results than individually. Although these funds can be invested from 1,000 pesos, it is necessary to find out how high the risk of the investment we choose is.

There are equity funds and fixed income funds, the former are more risky because they do not assure you what your returns will be, and the latter are more conservative because you will know your exact returns. Investment funds are managed by financial entities responsible for investing this money in various financial instruments such as public debt, shares, real estate, etc., to generate returns. If you want to enter an investment fund, we recommend reviewing those of various financial institutions such as banks, brokerage houses or insurers, depending on your objective.

2. Government bonds (Cetes)

 The Cetes (Federal Treasury Certificates) are financial debt instruments that are classified as insurance (they are similar to a promissory note), because it is the government that issues them and promises to pay that money over a certain period, more yields In other words, it is lending money to the government and generating a profit. In general, the Cetes are in terms of 28 to 364 days and each cete has a value of 10 pesos. Depending on your needs you will decide at what time to acquire them.

3. Promissory notes

 As the name implies, they are credit documents issued by financial institutions and granted to individuals, where a certain amount of money is promised within a defined period. Bank notes are generally safe instruments, so most people seek to acquire them even if their returns are low. If you are a person looking for conservative investments, these may be an option.

4. Roots

Perhaps, real estate is one of the best investments that can be made. Investing in real estate, although it is a bit more risky, in the long term generates good returns. If you buy an apartment and make an investment of your assets, that is, instead of living there, you rent it to have a source of income, it is important that you be aware of maintenance costs.

At present there are several Fintech crowdfunding platforms (collective financing) specialized in real estate investment that can be considered relatively safe. Investing in such projects through these platforms is easier because it does not require high amounts of investment and is accessible to most people. One of those platforms is Briq.mx

5. Loans

One of the new forms of investment that is emerging with great success is the Fintech platforms where you can lend from person to person (P2P) and generate returns. Previously they went to banks or loan houses to get a loan; however, it is now easier to get money from your cellulary with less interest rates. It is a win-win, because the borrower gets a loan with less interest rates, and the person who invests by lending their money gets better returns than they would in another financial instrument.

Start investing is also cultivate the habit of having good personal finances, because to invest you have to save. Finerio advises you to start investing before your 30 years to encourage the habit and when you grow up you will not be caught by surprise the economic difficulties. Start by making investments in safe instruments and see that it works for you more. It is important to have diversified your investments in different financial instruments to reduce losses.

To have good personal finances, the first step is to make the difference between our income and our expenses as large as possible, that is, to reduce our expenses as much as possible, regardless of the salary we have, and save the difference for defined goals.

Commonly, the more we earn the more we spend. There are people with high incomes are in adverse economic situations, and people with average incomes have their finances in very good condition. The key to having a good relationship with money throughout our lives is not to waste everything we earn and not spend more than we have, that will give us the opportunity to save for our goals and face the difficult situations that arise.

To reduce your expenses it is necessary that you first make a budget. Make a list of your monthly expenses and keep track of those expenses. The first time you do this exercise you will realize that you spend more than you thought in some categories: restaurants, transportation, parties, etc. Then you will begin to know your financial behavior and you can establish real limits to your budget. The goal of having a budget is to not spend money that you do not have and find opportunities to cut back on some unnecessary expenses. You will decide what your priorities are; However, most people have similar costs that are costing us more than we think. Know 11 ways to reduce them:

1. Eating out of home

Most of us are spending money away from home, so it’s good advice to start practicing our culinary skills and cooking at home. You can do it once a week and leave everything ready for the rest of it. Besides saving a lot of money, you will take care of your health, since homemade food is, in general, healthier.

2. Go to coffee shops

It is good to go to coffee shops from time to time, but doing it daily represents a considerable expense for our economy. If you can not live without coffee, we recommend buying a coffee maker. If you spend $ 50 a day on coffee, you are allocating $ 1500 of your soil per month. If you invest in a $ 1200 coffee machine, in less than a month you will recover your investment and the coffee will cost approximately $ 10 per day. Take your thermos everywhere.

3. Live alone

Another of the strongest expenses you have is the rent of our department, so sharing with someone else that extra space you have can reduce costs.

4. Uber

We know that traveling by public transport may not be the most comfortable option; however, taking it regularly or using a bicycle, if you have one, will reduce your transportation expenses considerably. Forget about Uber and you’ll see what you’ll save!

5. Have pay TV

At this time there is no reason to be paying more than 300 pesos a month in a television service. Internet now has economic and quality content options: Netflix, Amazon Prime Video, HBO GO and Youtube Red.

6. The fashionable phone

Having a cell phone nowadays has become a necessity; However, many of us get into debt to get the iPhone7 at any cost. Do not lose your financial peace for such an expensive phone, and less if you are not willing to pay insurance in case you lose it or it is stolen. Buy a cell phone that is functional and suits your needs.

7. The credit card

Find a card that provides benefits that really add value to you. If you travel a lot, get a card that teacumulates airline miles for each purchase. If you consider yourself a total client, look for a card that does not have an annuity; If, in general, you do not pay off your credit card every month, then look for one with lower interest rates, even if they charge you an annuity. Do not be afraid to investigate more options!

8. Stay in hotels

When we travel, hotel expenses usually absorb a large part of our budget. With Couchsurfing you can get free accommodation and even make local friends. If you are traveling as a group or as a couple, perhaps the best option is Airbnb, where a local will rent your house or apartment for you to stay. In Mexico, at least, this option is cheaper than hotels. This way you will save money that you can use to try the local cuisine or visit the most important attractions.

9. Go to the movies

Currently, attending movies has become very expensive. The tickets range between 60 and 80 pesos, and the price of popcorn and soda reaches ridiculous figures of over $ 100. The ideal is to go to the movies only when there is a movie that you really want to see.

A cheaper option is to go to the Cineteca Nacional, where a ticket costs $ 50, and the content they project is of very good quality.

10. Buy in the little shop and on the street

Of the worst habits that Mexicans have, and maybe it’s because there are stores and food stalls everywhere. These expenses are what are known as ant spending because they may seem small, but in the long run, they consume a large part of our income. Many times it is preferable to pay $ 70 for a healthy meal, to spend $ 40 on junk food, unhealthy, and not even leave you satisfied.

11. Consume bottled water

Buying bottled water every day can damage your portfolio a lot. If 1 liter of water costs $ 10, and we need to drink 2 liters a day, you would be spending $ 20 a day and $ 600 a month. Do not you think it’s exaggerated? Buy a plastic bottle and load with your water everywhere. You will save a good amount of money and along the way you will form a healthy habit and help the environment.

If you are determined to create a personal budget and track your expenses, to start saving; we recommend using Finerio, the first automated personal finance application in Mexico. With Finerio you can create a personalized budget and track it in an automated way. By linking your bank accounts to the platform, Finerio will automatically track all your expenses, categorizing them automatically and adding them to your budget. You only have to record your expenses in cash, everything else, the platform will do for you. In addition, your financial information will be safeguarded with the same security as banks do. inances?

Approved initiatives will generate 745 jobs, most of them highly qualified.

Last Thursday, January 29, the board of directors of the Center for Industrial Technological Development approved a total of 87 projects totaling 44 million euros in total.

Of the initiatives approved, 75 are individual R & D projects; 8 belong to the Innovation Hotline; 3 are consortium projects of R & D in which 6 companies participate and 1 project corresponds to the Global Innovation Line

A total of 83 companies participate, of which 70% are SMEs and, of these, 50% belong to medium and high technology sectors. Of all the companies involved, 29, that is, 35%, receive, for the first time, CDTI financing.

In addition, the CDTI extends the non-reimbursable tranche, up to 20% of the aid granted, to all projects co-financed with the new round of ERDF funds, regardless of the size of the beneficiary.

Likewise, in this Council the CDTI has improved the non-reimbursable tranche of the International Technological Cooperation projects that, now, will be up to 30%, both for SMEs and for large companies.

These improvements in financing are added to those already made in September 2014 in which they