With interest rates on the rise, you may be asking yourself what you should do before your mortgage payments rise higher than you can afford you pay.  Your home and credit are on the line and time is of the essence.  What do you do?

It’s possible to take a “cash-out” refinancing loan.  You can call your lender and ask to have your variable rate credit line converted to a fixed rate, fixed term mortgage; you may be surprised how easily the yes answer comes.  You can take out a simpler refinancing loan that again locks your interest rate and eliminates the credit line.  You can sell the house and downsize.  Or you can take a second and third job to pay the note… just kidding.

Banks want your business, and will attempt to keep you a happy customer who’s not going to be returning a home you can no longer afford the payments on.  So give it a shot, check with your banking institution or lender what your options are for checking the rapid rise in interest rates on your home.  The important thing to note is that these lenders want and need your business, especially with the housing markets drying up so quickly.  You’ll find them to be especially accommodating if you simply ask.  A paying customer is better than a bankrupt one.