Since the second quarter of 2003, the median home price in the Las Vegas metropolitan area has soared more than 52 percent. While that increase, like a lot of things in Vegas, is over the top, home prices in many parts of the United States have risen more than 20 percent in the past year, according to the National Association of Realtors.

Many homeowners are taking advantage of the sharp rise in real estate values by borrowing against the equity in their homes. While interest rates have been creeping higher all year, the average rate on a home equity line of credit is still about 4.7 percent. Interest on home loans is usually tax deductible.

But this great deal may not last much longer, because rates on home equity lines are variable. Most are linked to the prime rate, the rate banks charge their best customers. The Federal Reserve Board has signaled that it will continue to raise short-term rates this year, which would push the prime rate higher.

That doesn't mean interest rates will blow through the roof. Fed increases likely will be incremental, adding only a few dollars to most borrowers' monthly payments.

But many experts think rates will continue to rise through 2005. You should take that into account when deciding how much you can afford to borrow, says Keith Gumbinger, vice president of mortgage consultant HSH Associates. "Your monthly payment will probably be creeping up over time," he says.

Other strategies to insulate yourself against rising rates:

• Take out a home equity loan instead. With a home equity line of credit, you borrow against your home on a revolving basis. You can borrow as much or as little as you need, up to the loan limit. With a home equity loan, you receive a lump sum and pay it off over a fixed amount of time. The interest rate remains the same for the life of the loan.

Home equity loans have higher interest rates than lines of credit. The average rate for a home equity loan is 6.91 percent, according to Bankrate.com. But suppose you need money for a one-time purchase, such as a wedding or car, and you know you'll need several years to pay it off. A home equity loan offers the security of a fixed rate, says Doreen Woo Ho, president of Wells Fargo's Consumer Credit Group.

• Use discretion. Many lenders offer their lowest rates on lines of credit for $50,000 or more, says David Herpers, director of consumer affairs at mortgage lender Amerisave. But just because you have a line of credit for $50,000 doesn't mean you need to use it.

• Use a home equity line of credit to finance something that will provide long-term value, such as home improvements or college education, Gumbinger says. Many homeowners use lines of credit to pay off high-interest credit card debt. That's a smart strategy, as long as you resist the temptation to run up more credit card bills.