Interesting, but not the first time we are seeing this. I am in a situation where I have an equity line I can pay off and I’m on the fence about whether to do so or not. The interest rate is 4.775 and I’m afraid that if I pay it off I will be in a similar situation. For now, I have decided to hold tight and not pay it off until the credit squeeze eases a bit. When that happens I’ll likely pay it off and hopefully benefit from the higher credit score having a high untapped line will bring. If things get worse, I’ll have added security of having even more cash in the bank.
