How Long Do You Want To Stay In Your Home?

Mortgage rates are near record lows. If you have equity in your home, you might want to refinance or take out a home equity line of credit (HELOC). Or you might want to secure a fixed-rate loan.

Or you may want to take your own sweet time paying off your mortgage.

You have lots of options if you have equity in your home.

There are new federal rules coming into effect that will help make things clearer. Starting October 1, the Federal Trade Commission requires more disclosures about rates and payment schedules in advertising. In January, there are more laws. They seek to make closing costs clearer.

Economists predict that interest rates will start rising. All those federal deficits will suck up funds and that competition is likely to raise rates.

Reuters says: Variable-rate loans are not a good bet, except in a few specific conditions. While their rates are extremely low right now, the prospects are good that those rates could rise and force higher minimum monthly payments down the road. A variable-rate loan might be a good choice for someone who is quite certain they will be selling their home before the rate starts to adjust, typically after the first five years. It might also be a reasonable choice for a pre-retiree who expects to put a lot of extra cash toward their principal over the next five years, so that the loan is effectively paid off before it starts to adjust.