When to convert HELOC to loan- If bubble bursts ?

[Jan Fensterer]

Hello-

We purchased a great rental, for cash from our 2.7% Heloc. The property was underpriced by about $35k. Looking to the next year, we are anticipating a major market correction- I can get the home into a new 15 year loan- pay around $5k for the mortgage- lock it for 4.65%.

I LOVE the low interest rate currently & pay almost $1k towards principal every month- BUT, a correction in the market, has to happen, and interest rates will rise- Thoughts?

BTW- Rent is $2400 per Mo- $485 in interest, I pay $240 for all utilities, $850 per year for insurance- rented 100% to traveling nurses.

Owe $195K- Would get it to $130K on an investment loan

We are selling some vacant land, will have $50k to put down on a 15 year loan- Thoughts? Thanks :)