After jumping through hoops to get your adjustable refinance home mortgage back in January 2001, you faced the prospect of another hurdle at the close of 2007. Payment increases for refinance originated in January 2001 to July 2007 were ready to swoop and peck at your dwindling budget at the start of 2008 to July 2010. But lo and behold - the government stepped in to save sub-prime homeowners from home foreclosures.

Your Place in the Scheme of Things

If you happen to be one of the lucky lot with an adjustable refinance home mortgage salvaged from the dumps, congratulations! You won't be losing your home at all. Adjustable rate mortgages will remain at their original rates. If you've been struggling with the sudden surges in interest rates but still servicing your loan, you deserve this bonus.

This is due to the effort of the US Government when they were finally galvanized to action after poor and illiterate homeowners were bamboozled into a refinance home mortgage they could ill afford. Given this reprieve, it's time for you to honestly assess what you can do and not do, given the extra leverage. Responsible homeowners would gladly shore up their reserves for future payments and rest easy that their homes are theirs in the meantime.

Yet the struggle is not far from over. You still have a loan to pay until 2030 if you have a 30-year adjustable refinance home mortgage.

Tax Break and Interest Rate Freezes

The US government initiated temporary changes in the tax code. People who did not pay their lenders will not be taxed. This will help homeowners who worked out the condonation of parts of their refinance home mortgage debts with the lending companies.

Perhaps you've not been made aware of this development but just for the record, homeowners will not suffer taxes for any mortgage debts cancelled. But this deal is only good until Dec. 31, 2009 to include only principal residences.

But if you're one of those distressed homeowners facing the specter of home foreclosure, you can try and get help from non-profit organizations helping individuals having the same problem as you. At this point, the government has exerted muscle to help thousands of homeowners across the country. You can find these available resources and information online.

Making It Work

Now that you have more flexibility, focus on your mortgage. Inquire about the changes in the tax code if you are eligible for these. Enterprising homeowners would double their efforts to save and get ready for the eventuality in 2009.

If you can, switch to a fixed home refinance mortgage. A fixed rate allows you to work around your budget because there will be no sudden adjustments when interests rise or fall. The interest rates will stay put until you have fully paid up your loan.

An adjustable rate mortgage may have its advantages at the start, but after a few years, reality will set in and you are trapped with an expensive mortgage. While there is still time, make the switch and the get the lowest rate, quick!

Be glad that this reprieve has been sent your way. Make it worth your while and inquire from the home refinance mortgage company the possibilities of changing your ARM loan to a fixed rate mortgage. This advice is not only for the government sector. Those with mortgages from private companies should make the switch too.