I got a home equity line of credit...3% interest and tax deductible. It's always there when you need it without all the paperwork.

 

dbjb, what is based on the current value of your home? If it's an equity loan, and you haven't exceeded the 100,000 beyond the borrowing to buy and improve your home (or the 1.1 mill overall limit) it's deductible. Doesn't matter what you're home is worth.
You're right, you get a 1099, actually it's a 1098, from your mortgage company which tells you the interest you paid, but not how much of it you can deduct. And a second home qualifies as long as you don't exceed the 1.1 mill limit.