What could be a mortgage game changer? one major bank is now offering no money down mortgages to some buyers, designed to close the home ownership gap for minorities.

But there are some important things to consider before you borrow. Rebecca Jarvis is back with more on that, Rebecca, good morning.

Hi Whit, yeah and one of the biggest obstacles to home ownership is saving up for that down payment typically 20 percent of the home's price.

Now Bank of America is launching a new program that will help buyers in predominantly Black and Hispanic neighborhoods.

Including cities like Charlotte Dallas Detroit Los Angeles and Miami, it will make the dream of buying a home possible, and here's what you need to know.

This morning, the cost of borrowing up again with the FED hiking interest rates for the third time since June to combat historic inflation.

We have got to get inflation behind us, I wish there were a painless way to do that, there isn't.

The result, new home loans are more expensive, the average 30-year fixed-rate mortgage nearly doubling since January, now above six percent.

The housing market doesn't do well in a rising interest rate environment, and that's because consumers are relying on mortgages in order to become a homeowner.

And what we've seen since the start of this year is that millions of Americans have now been priced out of home ownership.

As a result, more Americans are now turning to adjustable rate mortgages like the 5/1 ARM⁽¹⁾ which offers a 4.93 percent rate, more than a percentage Point lower than the 30-year fixed.

This type of mortgage lets you buy with lower payments for the first five years, the risk the loans are subject to a variable rate, meaning if rates go much higher, you'll eventually have to make much higher payments.

Something that hurt a lot of homeowners in the Great Recession, the popularity of these loans is now at a 15-year High.

Some banks are also offering new programs for those who fall within income requirements, like Chase's Dream Maker mortgage which lets qualified buyers make down payments as little as 3 percent.

And Bank of America's Community Affordable Loan solution which offers zero down payments and zero closing costs in specific markets for qualified first-time home buyers.

disadvantage in Risk to adjustable rate mortgages is what happens after the fixed period is up, this happened to a lot of people in the financial crisis when rates went up.

And they actually owed even more than they would have with a fixed rate mortgage, so you have to do the math here.

Now with those zero down payment and lower down payment programs, you also have to remember that your monthly bills will likely be higher.

And in a housing market, an economy like this which is showing some signs of potential recession ahead, you want to be really clear about the risks that you are taking on guys.

This is a very gigantic financial decision, buying a home probably the biggest financial decision of your life, and you want to go into it with the right information do all the math you can ask.

But there's also a ton of calculators online, that will help you do this math and they're very user friendly these days.

So do it, so that you don't regret it down the line, guys. - Yep it sounds good, but you need to do your homework absolutely, all right thank you so much Rebecca.