I have a home equity line of credit with an adjustable rate. Currently (as it has been for quite some time), it's sitting at 3.5%. I understand that we're not sure how much interest rates will rise, and that no one can really predict specific numbers, but I'm having trouble "guesstimating" what my interest rate may increase to. Is it reasonable to assume it will stay under 4% or is that naive and I should be expecting for it to go closer to 5% or more over the course of the next 12-18 months?
Obviously there are plenty of opinions and conjecture that could arise, but I'm looking for answers based on historical trends and knowledge of how and when ARMs are adjusted.