Some issues to consider about home buying and refinancing:

First, "Where can you go to find first-time home buyer programs?" one reader writes.

To start, visit www.hud.gov and click on "Buying," for a list of various federal programs. Click on "Local programs," on that page to track down agencies in your state that might offer special first-time home buying programs.

But don't limit yourself to state or federal programs. Also contact local housing agencies. Pick up the phone. Check area religious establishments, some of which may be offering down payment assistance to help get people in homes. We've also noted that certain employers are offering down payment assistance as an employee benefit to recruit help. Plus, if you're buying a home preconstruction, there might be more favorable mortgage terms through the developer. Another option: A parent may be able to pledge money toward a down payment through certain lenders.

However, we urge you to evaluate the terms of any mortgage program -- including first-time home buyer programs -- very carefully. Need help deciphering it? Visit a HUD-approved counselor. You can find one by calling 800-569-4287.

This is important because not all first-time home buyer programs are the greatest. Examples: We've seen some with lower interest rates, but a requirement of above-average closing costs. Other programs qualify borrowers with little or no down payment, but have no interest rate breaks. Meanwhile, with less money down, you'll owe more interest over the life of the loan.

We've also seen deals in which closing fees are added to the loan balance, costing you more over the long term. Some of these programs could spell trouble if you must sell your home, and housing prices have dropped.

On the other hand, we also know a person who was very pleasantly surprised to receive a letter from the city from which he borrowed money, under a first-time home buyer program, notifying him that he no longer needed to make mortgage payments. It was a perk of his deal, available due to good management of the program's funds!

Looking to refinance an existing mortgage? Patty McGill, past-president of the National Association of Mortgage Brokers, told us you could hit a brick wall if you put no money down on a mortgage taken out recently.

Lenders, Ms. McGill said, are beginning to reject initial appraisals and are turning to their own data bases. In some cases, she said, home values have not been high enough to qualify the borrower to refinance.

Before refinancing, Ms. McGill suggested that you first get a good sense from your mortgage broker or lender whether you'll qualify, based also on the appraisal. Do this before you pay a $200 to $500 appraisal fee.

Is it doubtful you'll qualify? If so, Ms. McGill suggested that you hold off refinancing, and start adding principal to any interest-only mortgage payments -- provided that you have no prepayment penalty. Do this, she suggests, until refinancing becomes a more viable option.

Another issue to consider if you're refinancing: Is a bankruptcy is in the cards? If so, John Penn, president of the American Bankruptcy Institute and a partner of Haynes and Boone, Dallas, suggests consulting with a bankruptcy attorney first.

On one hand, it could be a better idea to refinance before the impending bankruptcy, because you likely can get better loan terms, he said.

On the other hand, what you do with the proceeds from a refinancing also could affect your ability to get a bankruptcy discharged. Without a discharge, you could have a tough time getting a loan again. In addition, bankruptcy trustees could wind up in the middle of your refinancing efforts "with their hands out," he said.

"The bankruptcy bill [with tough new provisions that took effect Monday], doesn't necessarily drive this issue," Mr. Penn said. "But there are lots of other things that could be out there. For example if you [reposition money] with the intent to hinder, delay or defraud creditors or defraud the bankruptcy trustee, you might get a visit from the FBI."