New data out shows that mortgage delinquencies are going to be bad in 2006 and worse in 2007. People bought homes with interest only loans in huge numbers this year and now they’re having trouble making the payments. People are already calling their mortgage companies asking for leniencies, according to Fitch, which rates commercial mortgage services. Fitch has just put out a report showing delinquencies going up about 15 percent. About one in 100 homes is in foreclosure right now and about 5 percent of homes are in delinquency. So, people are going to face some serious difficulties in the coming years. Now is the time to eliminate as many problems as possible. If you sense that making payments will be difficult, you need to reconsider your path. Another issue is the fact that floating mortgages readjust. If you’re thinking of staying in a home for a number of years, go ahead and refinance into a fixed rate loan or an ARM that is fixed for at least five years. There are decent deals out there. But the greatest worry is for people in what are called “option payment mortgages.” Overwhelmingly, these people are not able to pay enough each month to keep the loan amount from rising. Do not worry about your credit card bills if you don’t have enough money to pay your mortgage. Your mortgage comes first! You may trash your credit, but you’ll keep a roof over your head. Food on the table is next. And credit cards are last, despite how many calls you get from creditors or collection agencies.