In the mortgage process , what is a Simple Interest loan ?

A Simple Interest loan is a loan on which interest is calculated and charged on the actual balance each day, instead of on a monthly accrual basis where interest is charged from one scheduled payment due date to the next payment due date.This is without regard to the date on which the borrower actually pays it. The interest paid on Simple Interest loans will be more if the borrower's payments are made later than scheduled and lower if the borrower's payments are made earlier than scheduled.