I have a choice between a variable or fixed interest rate on a 100,000 home equity loan and I don't know enough about the fluctuation of the prime rate to make a sound decision. The variable rate is tied to the prime rate. Here are the details:
I took out a home equity loan in Jan 2007. I had 140,000.00 avail to me and took 100,000. I currently owe 97,586.00 on the loan. At the time of the loan I got to choose between a fixed rate of 7.24 or a variable rate of 7.74. I took the fixed rate. Now the variable rate is 4.49 (I am told that I get a variable rate of .51 below prime). I can change it over to the lower variable rate, but if I want to go back to fixed the current rate is 8.44. Given the economic climate and the likelyhood of the prime rate staying low....or not....should I change to the variable rate?

Thanks,

crackerjack