The Mrs. and i have made a decision on our HELOC dilemma! We have decided to stick with option #1 – to continue going with the variable rate with no locks. Your comments definitely helped us put things in perspective, and we feel the odds are in our favor :) And with the other week’s news about the Fed leaving the rates unchanged, i’m thinking we’re on the right path.

The worst that can happen is it starts to go up over time, but even so history shows the prime rate hasn’t gone above 10% in 25 years…and if disaster does strike, raising it above this threshold, we’d hopefully be long gone with the loan anyways, or at least re-financed by then.

And if we’re all wrong? well…..let’s just say i’ll be concocting some pretty colorful posts! That is, after i wipe up all the tears from my keyboard.