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Hi – I have a HELOC for $175,000 which is variable rate/interest only payments for 10 years (until 2017 – yes I bought about two weeks before the subprime mortgage meltdown boo hoo!!). Of course right now the payments are very very low – but because murmurings are getting louder about the need to stabilize the dollar (i.e., raise interest rates) I’m wondering if I should be locking in the rates now – I’ve been checking lock-in rates since we closed (June 2007)and they have gone up from about 8.4 to 8.8 (my mortgage broker was of course assuring me all that time they would go down eventually).

What would YOU do – you people out there who are smart about these things? Lock in now before it’s too late? or ride out these super low rates that have lowered our heloc payments by $400/month over the past year?