1st- Refinance your existing home loan and take the cash in hand to cover the expenses you will incur. Good part is this will give you the lowest possible rate, bad part is the fees for this transaction will be significantly higher than the other types. For instance, you may be paying $5k in closing costs to borrow $20k at a lower interest rate.

2nd- Home equity loan, this is a fully amortized 2nd mortgage where you will pay principle and interest over a fixed period of time, generally 15 to 20 years. The rate is fixed and can range anywhere from 6.5% to 10% depending on your credit score and the CLTV (combined loan to value, current balance + new balance / appraised value). There are also many options out there for no closing costs on these.

3rd- HELOC, home equity line of credit, this is another type of 2nd mortgage. Good part is you do not have to take all the money upfront like you do in the preceeding options. You can continue to draw against this line. Bad part is this is generally an adjustable rate loan tied to prime. You usually have a draw period of 5 or 10 years where you only pay interest, after that it becomes fully amortized. You also will have annual fees associated with this, so look into that.

The best part of the three options is the interest you pay will be tax deductable (see tax advisor). Choosing between the three should depend on numerous variables such as how soon you want this paid off, how much disposable income you currently have, and the rate and terms of your existing mortgage.

Please feel free to contact with any additional questions.