In LoanPro, when a payment is applied, you have the option to decide how the portion of that payment that exceeds the amount due on the account will be applied. Not all options for applying this “extra” amount are available for both interest application types. This article covers what happens to the extra-towards setting when the interest application type is changed on a loan. The system uses this setting to apply loan payments, so if payments are already applying on the loan their “extra application” may change.
The following table shows the value that the saved value will convert to when the interest application type is changed on the loan.