Homeowners at risk of foreclosure may be able to benefit from a provision in the housing bill signed by the president this week that will allow them to refinance into more-affordable loans backed by the Federal Housing Administration. To help people interested in a FHA mortgage, LendingTree.com also this week launched an FHA eligibility tool. Visit LendingTree.com. "We've discovered that most borrowers are unaware of FHA-insured loans and what it takes to actually qualify for one," says Nicole Hall, editor-in-chief of the LendingTree Smart Borrower Center, in a news release. FHA-insured loans once had been seen as an option for lower-income borrowers, those with low down payments and those with weak credit scores. But now FHA is attracting even "well-to-do borrowers in affluent housing markets," according to the release.

This week (July 31 - Aug. 6)the experts say: Rising rates are probably in your future.

More tahn the absolute direction of rates given these volatile times, borrowers should focus on the affordability of homes, i.e., how much they can qualify for is a function of four key elements. As a borrower, yoou should consider each of these carefully and use the tools found on mortgage lender Web sites to "ball park" your payments based on: loan amount requested, income, credit score and the amount of debt owed. Knowing how lenders develop pricing makes you an informed borrower. Rates - UP. Cameron Findlay, chief economist, LendingTree.com, Charlotte, NC.

Congress' plan to allow people to refinance into more affordable mortgages won't just relieve thousands of homeowners - it's also expected to save the banks who issue the loans billions of dollars. Most banks will end up losing much less money handling mortgages over to teh government than they would if the loans defaulted and the homes went into foreclosure. Plus, it will be up to the bank to decide whether to allow the homeowner to refinance....Meanwhile, Charlotte-based LendingTree plans to debut today a feature on its Web site that allows customers to submit requests for an FHA loan and receive competing offers from banks. The online lending marketplace also is launching a tool that helps borrowers determine if they are eligible for an FHA loan. It's available at www.lendingtree.com/fha-loans.asp.

Borrowers who are interested in Federal Housing Administration laon guarantee programs can now check their eligibility and request four loan offers from qualified FHA lenders using the LendingTree Network. LendingTree has expanded its filters to allow borrowers looking for refinance or purchase loans to check their eligibility for FHA loan programs based on county-level loan limits and loan-to-value ratios.

One of the highlights of the housing bill waiting to be signed by President Bush is the tax creidt of up to $7,500 for first-time home buyers. But read a little closer and it doesn't seem quite as appealing for buyers: that credit has to be paid back. That's just one of the lines of find print in the bill that mutes the benefit to consumers, housing analysts say. According to the bill, the tax credit has to be returned in installments over 15 years. In essence, the perk amounts to a no-interest loan, said Cameron Findlay, chief economist for LendingTree.com, an online commpany that matches consumers with lenders.