Handling your ARMs...

Some tips on handling an ARM...

Consider refinancing. If you're planning on staying in your home for a few years, finance with a fixed-rate mortgage.

Don't go negative. If you have an option ARM (where your payments can go lower than interest-only) don't just pay the minimum. If you always make minimum payments higher payments will eventually be triggered. Make an extra large payment one or more times per year.

Get Help. Make an appointment with a HUD counseling agency (800-569-4287) or in Chicago use its 311 line (call 311).

Contact your lender. You may be able to modify the terms of your mortgage.

Sell. Downsize if need be.