Paying Extra on an Adjustable Rate Loan?

Are you considering paying extra on an adjustable rate loan? Check these tips first:
When paying extra on an adjustable rate loan, it reduces the monthly payment.
The new payment is calculated using the lower loan balance along with current market rates.
In contrast, with a fixed rate loan, the payment remain the same throughout the life of the loan.
Keep in mind it’s very important to know whether or not adjustable or fixed is better for you.