SEES, dD a Hints For Homebuyers From The Federal Reserve Board Mortgage Calculator Lets Consumers Compare (NAPSA)—Shopping around for a home loan or mortgage will help you to get the best financing deal. A mortgage—whether it’s a homepurchase, a refinancing, or a home equity loan—is a product, just like a car, so the price and terms maybe negotiable. You'll want to compare all the costs involved in obtaining a mort- gage. Shopping, comparing and negotiating may save you thou- sands of dollars. To make comparison shopping easier, the Federal Reserve has introduced a mortgage calculator on its Web site. The calculator is designed to help you compare the Homebuyers should compareall the costs when obtaining a mort- gage. That’s because comparing and negotiating may save them monthly payments and the amount thousandsofdollars. home for several kindsof fixed and adjustable-rate mortgages. of equity you will build in your adjustable-rate mortgages. At the Web site, you can select the types of mortgages you want to compare byfilling in interest rates for those mortgages. You can find information about interest rates on the Internet, in newspapers or from your financial institution, lender or broker. Consumers will need to com- pare at least one fixed-rate mortgage with at least one adjustablerate mortgage. In addition to identifying the types of mortgages they are considering, consumers are asked to provide information on home value, primary mortgage amount, second mortgage amount (optional), private mortgage insurance (PMI), estimated interest rates and expectations about future interest rates for The calculator estimates the loan balance in future years, home equity in future years, initial monthly payment (principal and interest), future monthly payments with no interest rate change and future monthly payments with an interest rate change. The user-friendly calculator also includes a mortgage shopping worksheet, a glossary of mortgage terms, and links to the Board’s other consumer education resources on mortgages. According to Federal Reserve Board Governor Randall S. Kroszner, “These comparisons should encourage more consumers to shop around and compare mortgage offers.” To learn more, visit www.federal reserve. gov.
