Mortgage Site Creates Clear and Simple Calculators in Response to FTC Study

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A study by the Federal Trade Commission (FTC) determined that required forms have done little to make mortgage refinancing understandable to borrowers. For example, two-thirds of the study group couldn't even tell if their loan had a pre-payment penalty. Additionally, homeowners may get little help with refinancing decisions from mortgage calculators. While it's fairly simple to compare a mortgage payment at a new rate to the payment at the old rate, the difference doesn't necessarily represent savings to the borrower. A new calculator created by addresses the concerns of today's borrowers by providing easier-to-understand refinance calculations.

Mortgage information site's most recent addition to its tools for consumers is a mortgage calculator ( designed to accommodate the refinancing transactions being researched by today's consumers. Popular refinancing transactions include cash out refinancing, zero down loans and loans in which closing costs are paid by the lender (through use of yield spread premiums) or financed into the loan by the borrower.

Studies by HUD and the FTC have determined that current mortgage forms provide insufficient information to consumers making mortgage decisions. Two-thirds of those studied by the FTC didn't even know if their mortgages carried prepayment penalties. Basic mortgage calculators may also not offer enough information to make an informed decision.

The new calculator at displays the point at which the new loan pays for itself (the break-even point) as well as custom messages or warnings. For example, it will indicate circumstances where the new monthly payment is lower, but interest charges over the life of the loan are higher. Such messages help homeowners considering a refinance to make more informed decisions about their mortgage financing. ( offers free, easy-to-use online mortgage calculators for consumers to use and webmasters to incorporate into mortgage, real estate and financing Web sites. These practical, user-friendly mortgage loan calculators include amortization schedules, mortgage payment calculators, loan comparison calculators and refinance break-even calculators.


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Ksenia Kouchirenko

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