Economic uncertainty and inflationary pressures are driving interest rates up. If you are a homeowner with an Adjustable Rate Mortgage you might be concerned how this is going to affect your mortgage payments. Here is what you need to know to protect your wallet in uncertain times.

Fixed rate, traditional mortgages have the advantage of providing a constant payment amounts with an interest rate that will not change because of the Federal Reserve or economic uncertainty when bombs fall in the Middle East. If you have a low tolerance for financial risk, this is the mortgage loan for you.

Fixed rate mortgages come with a variety of term lengths depending on your financial goals. If your objective is to find the lowest monthly payment possible, choosing the longest term length possible will provide this payment. There are term lengths today ranging from 5 to 50 years to help you reach your financial objectives; keep in mind that the higher the term length you choose the higher your interest rate will be.

The finance charges you pay for your mortgage are dependent largely on you interest rate; however, you need to consider the lender fees and closing costs before choosing a mortgage offer. Carefully shopping for your mortgage will ensure you receive the best deal. While fixed rate mortgages offer the highest degree of safety and stability, they may not be right for every homeowner. To learn more about your mortgage options, including how to avoid common mortgage mistakes, register for a free mortgage guidebook.