title. i understand the difference between variable and fixed as definitions however with loans, ‘variable’ doesn’t quite register to me..
why on earth would someone consider that type of loan with a purchase of let’s say, a house?
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Adjustable rate mortgages are easier to qualify for. Sometime it’s the only choice.
A fixed rate mortgage has a set payment throughout the whole time of the loan even if you choose to pay extra, the payment stays the same but the time is shortened.
An adjustable rate payment not only changes with the current interest rate but if you pay extra, the payment will go down but the time stays the same. You can also opt to pay the interest only if you’re short on money that month. You can even pay part of the interest if you’re really short but principle. [statement](https://modularhomeowners.com/wp-content/uploads/2012/12/mortgagepayment.png)
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