Charlotte Observer:Â
Some banks will even turn your floating rate credit line into a smorgasbord of tax-deductible financial planning choices, fixed-rate and variable-rate. You might, for example, take your $50,000 floating-rate credit line and convert $30,000 of it into an interest-only fixed-rate note for five years to pay for educational expenses. You might take the other $20,000 and fix the rate with a fully amortizing payment schedule that will retire the balance — principal and interest — in 10 to 15 years.