|Federal Reserve Offers Online Mortgage Calculator
This summer, the Federal Reserve unveiled its latest tool to help consumers manage their finances: an online mortgage comparison calculator. The tool allows consumers to compare monthly mortgage payments and the amount of equity they will accrue for up to six types of fixed- and adjustable-rate mortgages.
Simplifies comparison mortgage shopping
"We have created a tool that will allow consumers to look ahead to see how much equity they will build and what their mortgage payments might be three, five, seven, or 10 years down the road with different mortgage products," said Federal Reserve Gov. Randall S. Kroszner. "These comparisons should encourage more consumers to shop around and compare mortgage offers."
Host of useful features
With this information, the calculator estimates the loan balance and home equity in future years, the initial monthly payment (broken down into interest and principal), future monthly payments with no interest rate change, and future monthly payments with a change in interest rates.
It also includes a mortgage shopping worksheet, a glossary of mortgage terms, and links to the Board of Governors’ other consumer education resources on mortgages.
July 17, 2007