The National Association of Realtors and the Center for Responsible Lending have issued a brochure warning consumers about the potential pitfalls of certain types of specialty mortgages.The publication, "Shopping for a Mortgage? Do Your Homework First," informs homebuyers that monthly payments on some specialty mortgages can increase more than 50% when the introductory period ends. The brochure helps consumers understand conventional fixed-rate and adjustable-rate mortgages as well as "more exotic" loan programs such as interest-only mortgages, 40-year fixed-rate mortgages, negative amortization mortgages, and option payment ARMs, the organizations said. "We're warning homebuyers to approach these new mortgages carefully," said Mike Calhoun, general counsel of the Center for Responsible Lending. "They should be cautious about accepting a mortgage they can't afford. These mortgages can be devastating for families who are stretching their budget to buy a home." The organizations can be found online at http://www.realtor.org and http://www.responsiblelending.org.

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