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You can counteract rising interest rates --
here's how
By Michael
D. Larson • Bankrate.com
 Forget
7 percent mortgages -- what happened to the 8 percent ones?
With the Federal
Reserve Board hiking interest rates like there's no tomorrow,
they're rapidly going the way of the dodo. As of Feb. 2, the average
rate on a 30-year fixed mortgage was 8.34 percent, up from 6.46
percent in October 1998, according to Bankrate.com surveys.
That means today's home buyer has to come up with almost $200 more
a month to cover the principal and interest payment on a $150,000
loan.
Because that can squeeze somebody's finances
substantially, Bankrate.com wants to help. We've updated several
of our stories on housing, haggling and home loans that will teach
you more about the buying process. Though they won't roll back the
interest rate clock completely, they will teach you how to shop
smarter and save money.
- THE
SLOW SEASON -- You can still catch the tail end of the
slow season for home shopping.
- RATE
LOCKS -- What are rate locks and how do they work?
- HAGGLING
-- Ever wonder how the best hagglers ply their trade? We'll tell
you -- and how to use their tactics to your advantage when buying
a house.
- CUT-RATE
MORTGAGES -- Even when rates go up, they can go down,
too. Check out these mortgages, which feature rates that decline
automatically.
- HOW
TO SHAVE COSTS -- Looking for some quick, easy advice
on how to save money? Here are seven tips from the experts.
- ADJUSTABLE-RATE
MORTGAGES -- ARMs
are popular now that 30-year fixed rate mortgages are getting
more and more expensive. Here's how they work.
PLUS: If you do go for an ARM, here are some terms
to know.
- SHOULD
YOU EVEN BUY A HOUSE? -- With rates heading up, it's going
to get tougher and tougher to make a mortgage payment. Maybe now's
a good time to think about whether you should be buying at all.
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