These lines are a great strategy for anyone that owns residential real estate ... great on rentals or principal residences, and best put in place when you really don't need the money.
We've usually gone with floaters because these are backup sources of cash for us, not a normal fixed expense, and we have a few to work with ... variable programs ususally group around prime, plus / minus 1% or so.
If you're going to pull signfiicant cash out and keep it out as long as possible, then the interest rate choice will depend greatly on your view of future events. If you think rates will continue to climb significantly, a fixed rate may still appeal to you.
Also note these are usually very cheap to put into place. If you later decide you don't like the deal, not too tough to switch to another lender / program.
The rates you quote seem high ... try
www.quickenloans.com and
www.bankrate.com for a couple more sources. Watch for program details like a .25% rate cut for direct debits to your bank account for monthly payments; promotions that provide a lower rate, but a requirement to pull down a certain amount of cash (usually NOT accompanied by a requirement to keep all of that cash outstanding for a certain period); lower loan-to-values (LTV's) will also drop the rate, as opposed to high LTV's like 90%+.
These are great tools, and very handy for financial flexibility ... you can stroke a check sometimes (on the house!), when otherwise you might need to cash in a CD, etc.
Best of luck.
