The Federal Reserve Board (FRB) has a mortgage calculator tool on their website that allows 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. The calculator allows 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, interest-only ARMs and payment-option ARMs. 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, private mortgage insurance premium, estimated interest rates and expectations about future interest rates for adjustable mortgages. The calculator estimates the loan balance in future years, home equity in future years, initial monthly payments, future monthly payments with no interest rate change, and future monthly payments with an interest rate change.
For more information or to access the mortgage calculator, go to: https://www.federalreserve.gov/apps/mortcalc/