Your obsession on home equity loan
Banks expect that at some point the prime interest rate will rise higher than your fixed rate mortgage's interest rate and the bank will be forced to pay the shortfall out of its own pocket. Banks offer higher interest rates for fixed rate mortgage loans than for adjustable rate mortgages to cover for this eventuality. A convertible home mortgage loan begins as an adjustable rate loan, but you have a period of time during which you are allowed to convert to a fixed rate. If interest rates are high but you expect them to drop shortly, this is a good loan type to choose. When interest rates are high you can get the benefit of an adjustable rate mortgage's comparatively lower rates, and when interest rates drop, you can lock in a lower interest rate for the remainder of the life of the loan.