Question by Dakahuna4u: Is it smart to keep my home equity line as my primary mortgage or refinance to a 30 yr fixed?
The interest rate is 3.49% on the home equity line. Will this be going up soon? I just worry that it might go really high sometime.
The rate is tied to the wall street prime rate. Prime – 1/4%
Answer by J A
Depends on what it’s tied to. If the rate is tied to the prime rate, then it’s probably going to be okay for awhile. Even if it adjusts upward, the Fed rarely adjusts prime more than .25 % at a time.
Find out what the rate is tied to.
What do you think? Answer below!