<p>Yes although it has already been stated, it bears repeating. </p>
<p>Looking BACK at prior year interest rates (esp the last 3 yrs) is almost meaningless as this is an atypical situation for the US. It all depends on the economy. If it stays in the hole, yes the int. rates may not move much. If it starts a strong recovery, those rates will not be this low again. How fast? Probably not skyrocket if you’re done paying the loan off 3 years from today. </p>
<p>So while variable rate loans are normally risky (just ask all foreclosed-on homeowners who took out ARM loans and mortgage went from 1k to 3k per month) if you are <em>absolutely</em> sure you will have it paid off in 3 yrs you are probably not making a bad decision. The upside? Your loan is a great decision if the rates stay low. The economy (and interest rates) have already stayed low for much longer than most analysts/people expected (or hoped).</p>