Prime Rate

Q: Help! What do we do? We purchased a home in Las Vegas last August for $346,000; $69, 200 of it on a HELOC based on 1% above prime. Now that Prime has jumped our payments have, of course, gone way up too. We are military and are only expecting to be in this home for only about two or three more years. What do we do? Will Prime continue to go up? Should we panic? What are our options? What affects Prime Rate anyway?
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Q: These interest rates are so confusing. What does the Prime Rate mean? It seems not to change too often and sometimes does not even affect the mortgage rates.
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Q: Is it true that banks are free to make their own Prime Rates? Do most banks use a standard (such as WSJ or other) benchmark for Prime? Now that the war is over and the economy should improve, will Prime Rate go up?
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