Suze Orman’s house rules on rising mortgage rates

Now that interest rates are rising, home buyers and potential home buyers question whether they've missed the boat when it comes to getting a deal on home loans. "Just settle down," says Suze Orman. "These are still some of the lowest interest rates when it comes to financing a home or refinancing a home that you are ever going to find, bar none," she said.

Suze Orman

Over the last few years, rates have been as low as 2.8 percent but now the average interest rate has nearly doubled to 4.56 percent, according to the latest data from the Mortgage Bankers Association. Nonetheless, Orman says this is not the worst thing that can happen to a mortgage-seeker. In fact, she sees it as an opportunity.

"Interest rates have gone up so [fewer] people are refinancing, which means banks will get more lenient. So if you didn't qualify for a loan before, you may qualify now," Orman pointed out.

According to The Mortgage Bankers Association home-loan applications hit a six-month low, dropping 4.7 percent since February. This slight lowering in demand for mortgages means "sellers may be more willing to negotiate and come down on his or her price, so it will be the same financially in the long run," Orman said.

Follow these rules to figure out if getting a new mortgage makes good money sense for you.

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Rising Rates House Rules


How long will you be staying in your home?

What is your mortgage term?

How many years are you into it?

What would it cost to refinance?

What would your new monthly payments be?

How much will your new payment save every month?

You can figure it all out easily in the calculator below to see if you will be able to recoup your refinancing costs. And remember, Orman says never refinance for a longer term than what's left on your current mortgage.

Refinance Calculator

—By CNBC's Sakina Spruell. Follow her on Twitter @SakinaCNBC.

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