2. Switch to a Fixed-Rate Mortgage
If you took advantage of the historically low interest rates by getting a variable-rate mortgage, you’re likely to see your monthly mortgage payment increase. You can rein in potential increases to your mortgage payment by refinancing. “Lock down all debt into the form of fully amortizing, fixed-rate mortgages,” said Todd Tresidder, a money coach at FinancialMentor.com.
“If you have a variable or balloon [loan], and plan on holding the property for more than a few years, then refinance,” he said. “If you’re renting, then consider buying. The concept is to transfer the risk of rising interest rates to the lender through fixed-rate, fully amortizing financing.”