The frequency at which mortgages are compounded can vary depending on the terms of the mortgage agreement. Most traditional mortgages offered by banks and other financial institutions compound semi-annually, meaning that the interest is calculated twice a year and added to the principal balance. However, some mortgages may be compounded more frequently, such as monthly or even daily. Private Mortgage Lenders and Mortgage Investment Corporations (MICs) may have different compounding schedules, depending on their policies and agreements with borrowers. It is important to review the terms of your mortgage agreement to understand how often the interest is compounded and how it affects your mortgage payments and overall cost of borrowing.