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On June 19, 2007, the Board of Governors of the Federal Reserve System (Board) introduced an online mortgage comparison calculator for consumers. This calculator lets users compare monthly mortgage payments and the amount of equity that will build for up to six types of fixed- and adjustable-rate mortgages. The calculator makes it easy for consumers to compare monthly payments and equity accumulation among 30-year and 15-year fixed-rate mortgages, interest-only fixed-rate mortgages, adjustable-rate mortgages (ARMs), interest-only ARMs, and payment-option ARMs. The calculator includes a mortgage shopping worksheet, a glossary of mortgage terms, and links to the Board's other consumer education resources on mortgages. The calculator can be found on the Board's website.
The Board's website offers consumers many other resources on a variety of consumer finance topics, including credit cards, credit reports, identity theft, mortgages, leasing, and personal finance. Consumers can access this information at www.federalreserve.gov.
Financial institutions and creditors are encouraged to provide these links to their customers to help increase their financial literacy.
The views expressed in this article are those of the author and are not necessarily those of this Reserve Bank or the Federal Reserve System.