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Originally Posted by Rhettzky
You might change your tune when interest rates climb. I think you guys have to seriously consider locking in at an interest rate now and staying away from these deals. It's obvious that interest rates are starting to climb and I've heard from some sources that they could be as high as 8% within a year. We locked our house down at 4.7% last year and this year it's already looking at around 5.3 - 5.7% (we're considering moving again).
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Even if I had a mortgage (which I don't want) I'd still be in short term rates. I'd rather deal with the fluctuations in rates and keep the rates lower than lock in.
Plus with my HELoC I can do things like making my mortgage tax deductable. As long as my investing + tax benifits beats my prime - 0.5 rate on my loc why would I lock in my rate?
I don't ever plan on paying it off!
Heck I don't ever plan on making more than the interest only payments except for lump sums to get the tax benifits.