ROCHESTER, N.Y. — This consumer alert tackles home equity loans. Now that rates are coming down, some homeowners may be considering tapping into their home equity.

When rates were really low, few folks were taking out home equity loans. Instead, you could just do a cash-out refinance, converting some of your home’s equity to cash. But today, if you have a mortgage at 3% or 4%, you don’t want to refinance at a rate more than 6%. That’s where a home equity loan might come into play.

News10NBC’s Deanna Dewberry chatted with Jeff Ostrowski, a Bankrate analyst, about the best times to tap into your home equity.

Jeff Ostrowski: “You want to be very careful about how you’re going to use the proceeds of a home equity loan. So, if you’re going to use that money to repair your house, to put on a new roof, to renovate the kitchen those are all perfectly acceptable uses of home equity.”

Deanna Dewberry: “So, for that person who is looking at the roof going yeah I could use a new roof but we could wait a bit. Does it behoove them to wait to see if rates come down some more before tapping into that home equity loan?”

Ostrowski: “Home equity loans come with a fixed rate. So, whatever rate you lock in today is the rate you’re going to be paying for the life of the loan. On the other hand, home equity lines of credit have a variable rate, and those move with interest rates.”

Dewberry: “For those folks who are thinking, yeah I’ve got this credit card debt at 25 percent. I could take out a home equity and pay off the credit card. Is that a good idea?”

Ostrowski: “If everything is good in your financial life and your income is solid and your spending is under control, in that case I would say yes, go ahead and tap your home equity. It’s better to have that debt at 8 and a half percent than at 25%.”

It’s important to note that a home equity loan is essentially a second mortgage, so defaulting could cost you your home. As with all things, you balance risk and reward. Are you using the money to make repairs that ultimately increase the value of home? Have you evaluated your budget and know that you’re going to be able to make these loan payments for the next 10 to 15 years? You need to evaluate these questions before making the leap.

Click here for the Consumer Financial Protection Bureau’s information about home equity loans.

Click here for Bankrate’s list of best home equity loans.

Click here for Forbes’ list.

Click here for NerdWallet’s list.