With interest rates being raised at a steady pace, you are probably starting to see some of your interest rates changing.

When interest rates are going up, you don't have to do without or fear not being able to find a mortgage. Higher interest rates simply mean that you might need to re-adjust your way of thinking.

Interest rates increases and decreases are simple to understand. When interest rates go down, the consumer is expected to borrow more and save less. When they go up, the consumer is expected to spend less and save more.

So it may be as simple as shifting your thinking from borrowing mode to saving mode right now. You may want to simply put your money in a short-term CD or money market account. Or you may want to go bigger and invest it in your retirement account.

CD's are not tied to the prime rate. Instead, they are based to Treasury securities. In general, the Treasury rates tend to move with the Fed rate increases, but you never know.

When rates are on the rise, it is often best to avoid long-term commitments, such as five year CDs. Wait and see if rates are expected to continue their upward climb before locking all of your investment potential up for several years.

Although the rates on home equity lines of credit are becoming higher all the time, that doesn't mean that you can't take advantage of the equity in your home when you need it.

Consider taking out a home equity loan. With a loan, you will receive your equity in a lump sum. You will make fixed monthly payments for a pre-determined amount of time. The interest rate is fixed, protecting you from potential rate increases. Although the rate is a little hgiher than with a home equity line of credit, you usually win in the long run with the fixed rate.

If you find that you really need to access your equity, you could also turn to a cash-out refinancing. With this option, your existing mortgage is refinanced for a larger amount that takes into account the equity accumulated by your home. You can take out your equity in cash.

Cash-out refinancings make sense if it will lower your rate or refinance an adjustable rate mortgage to a fixed rate. If you already have a nice, low fixed rate mortgage, the refinance could end up costing you more in the long run. You will have closing costs and a possible higher interest rate in return for your cash.

When looking at the different types of mortgage, remember that stability is your friend. A fixed rate mortgage offers you a fixed rate and payment for the life of the loan. You won't have to worry about your rates along with market rates.

Rising interest rates are really nothing to worry about at this point. Mortgage rates are still affordable for the majority of borrowers. Sometimes you just need to readjust your thinking. You might find that the rates are a good motivation to begin paying down your debt and building up your savings. If so, then the increase is a good thing.