Does your house need a little work? Maybe another bathroom for the kids, a screened-in porch, or a home office? You can make those changes right away by borrowing against the equity in your home. And the great thing about a second mortgage is, just like your first mortgage, the interest is tax deductible.

Rules vary from state to state about how much equity you need to qualify for a second mortgage. Typically, it’s 20% but it may be less. A second mortgage usually will run a 15-year course and the interest rate is often slightly higher than a competitive 30-year rate for a first mortgage. But, think of it this way: A loan at 8.25% is a lot better than a credit card loan at 13, 15, even 17% interest! Charging $10,000 worth of remodeling at 17% interest would cost you more than $142 a month in interest alone. The same amount on a second mortgage at 8.25 percent would run about $97 a month in interest AND principle. And remember, unlike your credit card, a second mortgage offers tax-deductible interest. By taking out a second mortgage, you can start enjoying your home improvements right away—without waiting to save all that cash. And the money you borrow is improving your home, making it an even better investment than it was before.