Interest calculated on both the principal and the accrued interest is known as compound interest. This means that interest is added to the initial principal, and future interest calculations are based on this new total. Over time, this can significantly increase the amount of interest earned or owed, as it compounds both the original amount and the accumulated interest.
*The information provided is for educational purposes only and should not be considered legal advice. For specific legal concerns or questions related to your mortgage, it is always best to consult with a qualified legal professional.*