How to Avoid Compound Interest on a Variable Rate Mortgage

A video claims that if you make a $1 additional payment on your mortgage every day, you will avoid compound interest. John Avlon: Do you really want to be figuring out how to pay your bank on a daily basis? He says it's complicated in actually getting the right strategy to follow the plan if the plan works. Avlon: I would not advise anybody, particularly in an interest rate environment of increasing interest rates.