Simple. You borrow money using your home as collateral. Interest on the loan is deductible up to $100,000. The loan can be used for anything you like and it would remain deductible. Unfortunately, there is a caveat to the deductibility. If you are subject to AMT (next year $67,000 income) you may loss the deductiblity. Congress is working on reducing the impact of the AMT on the middle class. Whether it passes is very questionable.