The problems in the sub-prime mortgage business means that everyone has to suffer, even people with high credit score, stable income, and a solid savings account. It can be difficult for some people on the margin to find a mortgage or refinance their existing mortgage, but if you follow the tips in this video, you can still come out on top. The important thing is to keep your credit history clean, be very careful about paying bills on time as you get to the point to refinance, and then do your research. Start online and then pick up the phone to make the calls. The more information you are armed with, the better you will be able to negotiate.

A few years ago when interest rates were low, a lot of us got ARM loans that were set to expire in 5 or 7 years. At that time, we did not expect that there would be a war or that economy will change so much that the interest rates will go up this high. Now is the time that these interest rates are reseting and for some people that monthly mortgage payment may go up significantly.

While the Fed may cut interest rates if the economy really starts to hurt, but don't count on it. Plus, the Fed tends to cut rates in 0.25 or at the most 0.50 increments. In other words, it can take a lot of time before we see a real drop.

So should you refinance your home mortgage? Generally it is a good idea and to tell us how to do it right, here is a good video from Andrea Coombes.

How to buy a home when interest rates are high?

For couples considering buying (or refinancing) a home, there may be one more headache to deal with: more scrutiny by mortgage lenders. In the past, while the banks may have been too liberal, now the pendulum has swung the other way. After problems in the sub-prime mortgage market, they are now strict with everyone demanding more documents and looking at credit scores more closely. So be prepared with documentation and if your credit history is less than stellar, you might have to pay higher interest rates.