The Nehemiah Corporation of America (www.nehemiahcorp.org), the nation's leading privately funded provider of down payment assistance, unveiled five tips to guide consumers through the home buying process in today's rising rate environment.

Many new homebuyers are unaware of the impact rising rates can have on the home buying and ownership experience.

The tips address housing decisions, mortgage options and tax issues faced by most buyers. Nehemiah has developed these tips based on its new homeownership education course.

Both the course and the tips are an extension of the organization's commitment to educating and protecting homebuyers and fulfilling its mission of promoting successful, responsible homeownership.

"Nehemiah's goal is to help create lifelong responsible homeowners. Our focus is not solely on the act of buying a home, rather in helping transform the lives of the recipients of our down payment assistance gifts," said Scott Syphax, president and CEO of Nehemiah. "To meet these goals over the past six months, we have developed multiple consumer education tools - new guidelines and new products - such as Nehemiah's Seven Rules For Homeownership and our MortgageGuardian(TM) Protection product."

The five tips for homebuyers in a rising interest rate environment are as follows:

-- 1. Buy a Home You Can Afford: Just because a lender can get you into a home, and make the number "work", doesn't mean you can afford the home. First time homebuyers often risk buying more home than they need; this is especially true when a lender is recommending use of an ARM loan product. When buying a home, the buyer should make sure the mortgage professional they work with clearly explains how much debt they can reasonably handle given their income. Homebuyers should be wary if they feel they're being pressured into a loan product or home that is not right for them.

-- 2. Find The Best Mortgage Product: The current mortgage marketplace is cluttered with a confusing array of loan products - Interest Only loans, Adjustable Rate Mortgages, 80/20s, etc. Yet not all products are right for all people, especially first time homebuyers. With attractive introductory rates and low monthly payments, ARM loans have dramatically increased in popularity for consumers looking to own a home. However, rate fluctuation as in today's rising rate market, will cause ARM loans to adjust and monthly payments to increase. For example, a $200,000 one-year ARM secured late last year with a monthly mortgage payment of $926 a month would have an increased monthly payment of $1,086, roughly 17 percent, by year-end. Such a scenario could be disastrous for homeowners on a tight budget. Traditional 30-year fixed rate mortgages typically make the most sense for first-time homeowners. Most importantly, consumers should work with a trusted lender that carefully explains their loan products in detail.

-- 3. Get Pre-Approved: One of the most critical elements of buying a home is planning. Creating a budget and understanding each of the new expenses is one important element of responsible homeownership. The most critical component of these new expenses is the mortgage payment itself. In order to get an accurate idea of how much the monthly mortgage payment will be, homeowners should get pre-approved by a lender before they find the home of their dreams. Taking this important step will allow them to see the actual amount of the monthly payment they will be required to pay each month. Looking at the monthly payment before they buy can help homebuyers plan and anticipate their new financial situation.

-- 4. Know What's Included in Your Monthly Payment: The majority of first-time homebuyers have Principal, Interest, Taxes and Insurance (PITI) built into their monthly payments. It is important for homebuyers to realize that there are occasions where some of these elements can fluctuate. Home values can be reassessed, changing the taxes owed. Area insurance rates can change mid-year. These and other factors can cause the monthly payment to fluctuate up or down. To ensure that they understand what is included in their payment and what isn't, what costs may change and what costs are fixed, homebuyers should ask their lender for specific information on what can effect their monthly payment.

-- 5. Secure Mortgage Protection: Many unexpected calamities or circumstances can affect a homebuyer's ability to pay their mortgage. Disability and job loss can force homeowners to miss payments and eventually lose their homes. There are several mortgage protection products on the market that specifically protect homeowners in the event of such tragedies. New homeowners should understand what's available and what might be right for them.

These tips were culled from Nehemiah's newly refreshed homeownership education program. The 10-part homeownership education course continues to teach consumers key aspects of the home buying process, highlighting homebuyer rights, questions buyers should ask themselves and others and fundamentals to becoming a successful homeowner after purchasing their home. The homeownership education course, free since Nehemiah's inception, will now offer potential homeowners new recommendations, new state specific data and a mortgage calculator to help prospective homebuyers prepare an accurate budget prior to buying a home. Nehemiah's revamped Homeownership Education Course is available on The Nehemiah Program(R) website, www.getdownpayment.com/buyers/.