(MONEY Magazine) – If you're planning to borrow against the equity in your home--or you want the option of doing so quickly in case of emergencies--now is an excellent time to establish a home-equity line of credit. Reason: Even as mortgage interest rates have climbed more than a full percentage point since February (to an average of 8.46% on a 30-year fixed-rate mortgage), home-equity rates have held steady at about 1 1/2 percentage points over the prime rate (recently 8.25%). The fierce competition among lenders that has held down rates has also created a bonanza of terrific deals. For example, nearly a third of home-equity lenders are offering ultralow six- to 12-month introductory rates averaging 7.3%--almost a full percentage point below prime--and many are waiving all closing costs and annual charges as well.

The hitch: Chances are, you won't be able to find a line that offers a tantalizingly low initial rate, the most competitive long-term rate--and the tiniest fees. So to find the lowest-cost deal, you must shop for a loan with the best overall combination of features that fit your specific needs. Here are three tips:

--If you're looking primarily for a standby credit line to tap in an emergency, says Cincinnati financial planner Michael Chasnoff, try to find a loan that doesn't charge closing costs and other up-front fees. Such levies can easily total up to 2.5% of the line amount. You should also avoid lenders who impose annual maintenance fees of $45 or so. Although no-fee lines don't usually carry the lowest rates, they can be competitive. For example, Norwest Bank in Minneapolis offers a no-fee line with a rate of prime plus one percentage point.

--If you plan to repay the loan quickly, you want a line with no fees and a low introductory rate. Example: The Dime Savings Bank of New York now offers a no-fee line that has a 5.75% rate for the first six months. Yes, this teaser rate can jump as high as 1 1/4 percentage points over prime, but that won't affect you if you pay off the loan within six months. In the same vein, if you think you'll need the money for a year, find a line with a 12-month teaser rate.

--If you expect to be a heavy long-term borrower, focus on the lowest rate you can get for as long as you have the loan and don't fret over fees. Most likely, your best deal will be a line that guarantees you will never pay more than the prime rate for the line's entire term, usually 10 to 20 years. With so many banks eager to offer these lines today, you may even be able to find one that will limit the rate to prime and eliminate closing costs. Example: Huntington Banks of Michigan in Detroit touts a prime rate line that comes with no closing costs, although it does carry a $96 annual maintenance fee. But even with that fee, you would save $650 or so a year by borrowing, say, $50,000 for 10 years at prime rate rather than at the typical prime plus 1 1/2 percentage points.

--Karen Cheney