How is interest charged?

Interest is calculated based upon the outstanding principal at the beginning of each billing year.  Interest is billed annually and is assessed in full on the first day of each billing year.  Any payoff of an assessment after the annual billing will be charged a full year’s interest (RCW 35.49.050).   

Example: Due date is May 1 and the required minimum payment is made on May 1. Then on July 1, resident is able to pay off. Even though only 2 months have passed, a full year of interest is still charged. 

Show All Answers

1. What does LID stand for?
2. What is an LID?
3. Why use LID’s?
4. Who do I talk to if I want to form an LID?
5. How do I start an LID?
6. What if I do not want to participate in the LID?
7. What happens at the LID Formation Hearing?
8. Who do I make my payment out to?
9. Can I make monthly payments?
10. Is there a payment grace period?
11. How is interest charged?
12. Is there payment assistance available?
13. Why is the title company telling me there is a lien on my property?
14. Why isn’t this included in my mortgage payment like property taxes?
15. What Statutes govern LID’s?