NEW YORK (CNN/Money) - For most of last year, homeowners enjoyed luscious mortgage rates below 6 percent.

In fact, the low rates made the options of home-equity loans and lines of credit an inexpensive way to get access to additional money.

But now mortgage rates are rising, with the national average on the 30-year fixed at 6.37 percent -- its highest since September.

So, what are your options if you're late to the party? Here are today's five tips:

Among the choices is a home equity line of credit, also known as a HELOC. Like a credit card, this is a variable-rate revolving line of credit that fluctuates with whatever the prime lending rate is.

CNNfn's Gerri Willis gives five tips for handling your home equity loans. Play video (Real or Windows Media)

Home equity loans, otherwise known as second mortgages, are another possibility. These offer a fixed rate of interest.

And finally, there is the option of refinancing your first mortgage while taking out some extra cash at the same time. This is better known as a cash-out-refi. For many borrowers, though, the recent increase in rates may have already eliminated this as an option.

If you take a look at the difference in interest rates between a home equity line of credit and a home equity loan, you'll see it is quite significant.

The national average on a HELOC is currently at 4.72 percent while an equity loan comes in at 7.19 percent, according to Bankrate.com. Home equity loans closely track the 30-year fixed rate.

Now, if your payback period is less than three years, the home equity line of credit may be the way to go. But if you expect to be paying back the loan longer over more than a three year period, consider the fixed rate equity loan, says Bankrate's Greg McBride.

Among the advantages of a HELOC is that the interest is tax deductible and, like a credit card, you're charged interest only on the money you actually borrow. Therefore, you can borrow as needed. Also, HELOCs have no closing costs, whereas equity loans can run you hundreds of dollars in closing costs.

Interest on equity loans is also deductible. It is deductible on a loan of $100,000 or less as long as the loan amount does not exceed the total value of the property. Other advantages to an equity loan include being able to use the cash from this second mortgage on anything you want.

It is also a great way to consolidate debt, in that you are locking in a rate and can then be on your way to paying off whatever you owe. It certainly beats paying 14 or 15 percent interest on, for example, a credit card.

If you are planning on taking out a line of credit, enjoy the initial attractive rate, but enjoy it wisely. For one thing, just like a variable rate credit card, if rates start to rise, so will your interest on the HELOC, and therefore so will your monthly payments.

Just because you're not paying closing costs on a HELOC doesn't mean there are no fees. In fact, Keith Gumbinger of HSH, a mortgage Web site, says that some banks charge an annual fee and others charge inactivity fees if you don't put the money to work.

Also, tapping a line of credit can be just as easy as throwing down your credit card. Make sure you don't get carried away. By spending more you're just hurting your ability to build a nest egg.

The downsides of home equity loans? They are more expensive. Interest costs are between 2 and 3 percent higher than the prime rate. What's more, with a home equity loan you don't have the flexibility of a HELOC; your loan amount, loan term and payments are all locked in.

It's one thing to run up a lot of credit card debt, it's another thing entirely to overextend yourself on a second mortgage. The stakes are far higher. Let's face it, if you fail to pay a home equity loan, you could be looking at default and ultimately lose your house.

For that reason, you want to make sure you keep your overall debt ratios within reason. Experts recommend that your first mortgage principal and interest not exceed 28 percent of your gross income.

According to Gumbinger, keep your overall debt -- including all mortgage-related debt, credit cards, etc. -- to 40 percent of your monthly gross income.

Make sure when you are deciding how much debt to take out that your budget can accommodate the additional payments without, for example, only paying the minimum or opting for interest-only payments on a HELOC.

One good use is paying off high-rate credit card debt. Face it, not only will you pay a far lower rate of interest, but you'll also get to deduct interest you pay on your taxes. (This strategy works best if you're not creating more credit card debt in the meantime.)

Consumers often use these loans to pay ongoing medical bills, elder care or college costs.

One investment that will keep on returning dividends: home improvements, particularly if you add those things that could really add value to your home when your sell, like another bathroom or a better kitchen.

Gerri Willis is a personal finance editor for CNN Business News. Willis also is co-host of CNNfn's The FlipSide, weekdays from 11 a.m. to 12:30 p.m. (ET). E-mail comments to 5tips@cnnfn.com.