Is it smart to keep my home equity line as my primary mortgage or refinance to a 30 yr fixed?

The interest rate is 3.49% on the home equity line. Will this be going up soon? I just worry that it might go really high sometime. The rate is tied to the wall street prime rate. Prime – 1/4%

What is a home equity line of credit? Do you recommend getting one? Are rates higher than a primary mortgage?

Is the interest on $200k home equity loan used to buy a new primary residence deductible on Sch A.?

We are planning to rent our existing home and pull $200k equity from that home to buy a new primary residence. I am not clear about the $100k deductible limit on the home-equity loans. Can I deduct it on Sch A or against the rental income and is the deductible equity loan capped at $100k. [...]