I agree that most people would never actually pay it off. I think the ability to continually borrow money you’ve already paid down would be too great for a lot of people to resist.
As far as the interest rate though, I may have misunderstood. I thought, like many Heloc’s, it was simply tied to the Libor, and therefore would vary monthly instead of being fixed.
Obviously, right now, there is a lot of upside potential. But historically, the rate would be as likely to tick down some months as it would to tick up others. Am I wrong?
