We are carrying some debt on our home equity line; it is our only debt. We are currently on track to pay it off in 3 -4 years. We are paying a fixed rate of 6.9%, but we have the option of converting it over to a 3% variable rate. We've always been a bit leery of variable rates, but I'm seriously considering it, because whatever we save on interest we could snowball into the principle.
So who has a crystal ball? When will rates start to rise, and how quickly? Would you stick with the known quantity of the high fixed rate, or go for the riskier proposition of the variable rate?