Interest rates are on the rise and homeowners who bought with an adjustable rate mortgage are starting to feel the pinch. In a MarketWatch article today, Chuck Jaffe detailed the issues:

• Nearly 25% of all mortgage debt in the US will come up for an interest-rate reset sometime in the next two years.
• "Some $400 billion in loans will get a new rate this year, and another $2 trillion are set to move in 2007."
• Experts think that ARM default rates will increase by 10% as these loans get more expensive.
• "The Libor rate, for example, has moved from roughly 4.2% a year ago to about 5.6% today. A mortgage that is pegged to Libor plus two percentage points, therefore, will adjust up to about 7.6%."
• "There is still time to get off the tracks before the train gets closer, but people need to act now. A 7% mortgage today beats an 8% refi a few months from now.

Do you have an adjustable rate mortgage? What are you doing to prepare for rising interest rates? Share your opinions and tips in the feedback section below.