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Reply to "Feeling nervous about HELOC loan amount - Advice?"
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[quote=Anonymous]The media and RE industry love to scream about rates going up just around the corner.. I think rates are going up, but not anywhere near as fast as most believe. Most helocs have a max rate and max rise per year. Do the calculation if the rate went up as fast as it possibly can, could you cut expenditures and pay it down aggressively? If the answer to the above is yes, then look at the yields on long dated treasuries (the yield of various maturity instruments is called the yield curve). From this you can get an idea of what the market expects rates to go to over the time when you expect to be paying down the loan. Then you can answer your original question of wheher nor not to refi into a jumbo fixed.[/quote]
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