Refinancing your adjustable rate mortgage into a fixed rate mortgage is often a wise idea, especially in a climate like today's, when adjustable rates are skyrocketing daily, forcing homeowners nationwide into foreclosure.

There are definitely advantages to getting an adjustable rate mortgage to buy a home, and in fact sometimes it's the only way certain households are even able to get a home mortgage in the first place. But part and parcel of using an adjustable rate mortgage intelligently is planning to protect yourself from unwieldy interest rate hikes in the future. Most people who get an ARM to buy a home should be planning ahead to either refinance into a fixed rate mortgage or sell their home before this eventuality occurs.

There are actually several good reasons for making such a move, not only to get yourself a fixed (and hopefully better) interest rate on your loan. People also refinance ARMs to get cash out for home improvements and other big expenses, and to consolidate debt.

Whatever your reasons, if you're thinking of refinancing that ARM, you're probably thinking clearly, and doing yourself a big favor. But to be sure, read on…

To make sure the timing is right in your refinancing endeavor, be clear on the terms of your existing loan.

• When and how often will it adjust
• How much will it adjust
• Is there a cap (a maximum rate beyond which it will get no higher no matter what the economic circumstances)
• Is there a prepayment penalty for refinancing and if so, how much

You also want to consider how long you're planning to live in your home. If you're thinking of moving within a couple of years, for example, then the closing costs for a refi may not be worth the small savings you'll get in interest rate reduction. (Incidentally, one way to save yourself on these costs up front is to roll them in to your refi - in other words).

As with getting any mortgage, getting a refi involves the same preparation, including calculating the costs involved and knowing your credit before you apply.

The peace of mind that often comes from home ownership can easily be thwarted by fears of rising interest rates. To protect yourself, and reclaim the peace of mind that should be yours, and could be again, consider whether now may be the right time to try to refinance that adjustable rate mortgage into a fixed rate mortgage. A fixed rate is a rate you can rely on, and it may just help you sleep better at night in that home you own.