No doubt about it, interest rates have been steadily moving up from the once lows that we saw not too long ago. Given the situation, many home owners are faced with increasing loan payments. Look to the following four tips and tricks to aid you in this time of rising interest rates.
1) Think both realistically and creatively on the use of home-equity lines of credit. Typically, borrowers can save interest on a month-to-month basis by moving balances from a home-equity line of credit to, a credit card for instance, oftentimes finding zero percent, or very low, interest rates. A borrower can make this work, however, a borrower must be attentive to detail (i.e. the small print), and moving money around at the proper times given the situation.
2) Consider a fixed-rate second mortgage to replace a large home-equity line of credit. Typically, borrowers can find a lower rate by ferreting out the details on this one., and perhaps remove the possibility that a rate hike will increase your costs, and set a fixed term so you fence in just how long you will be paying for the home improvements, or the condo development project that you took on.
3) Be on the lookout for mortgage brokers who will entice you to come back by offering home-equity credit lines with interest rates of prime plus zero or even below prime. If you do your research, this might allow you to get over that hump.
4) If you have an option loan, consider the idea of using the option to make interest only payments, while you go out and look for a better (longer term or fixed) rate. You will not build equity while doing this, perhaps one of the main reasons for buying a condo, but you will not hurt your credit by doing this.
Keith Munsell 
