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There was a great discussion here about a year ago about fixed vs. variable rates on a HELOC. I was hoping for some updated input and comments.

I have a Bank of America HELOC in which the principal is slightly larger than the cost of the first mortgage. About three years ago, after spending it down on renovations, I switched from the variable rate (prime minus something) to fixed (6.85%) as the prime rate increased. Yearly,we pay 1/25th of the principal (following the time line of our first mortgage) plus the fixed interest.

That strategy has worked well for us the last few years, but now that the variable/prime rate is so low, I’m wondering if we should switch back. BofA lets us switch back and forth pretty easily (so there are no refi cost implications). The catch is that the current fixed rate is higher than what we pay now (8 to 9%).

Should we gamble on a variable rate? Are folk’s sense that prime will stay below the average fixed rate mortgage rates like they did in the early 2000s?
I’d really appreciate this community’s thoughts!