Understanding Tax Deductibility for Interest Paid with Home Equity Loans & Credit Lines
Is the interest I pay on my home equity loan deductible? In most cases the interest paid for a home equity loan or second mortgage is deductible. The interest on fixed rate equity loans or adjustable lines of credit can be tax deductible. We suggest you consult your tax planner to get more specific advice that pertains to your situation.
Tax advantages are one of the appealing benefits for homeowners choosing an equity loans to finance the purchase of automobiles, boats, and motor homes. In most cases, interest on your credit cards or auto loans is not tax deductible. And because you're borrowing against secured collateral, the interest rate is often times lower than the rates offered for other unsecured installment loans.
So don't forget, the mortgage interest is deductible on a home equity loan or line of credit up to $100,000. The tax codes also suggest that deductions are available up to 100% of the value of your home. Tax deductions for loans that go above the value of your home, like 125% loans, should be addressed with a tax attorney or cpa you trust. If you are married and filing separately, interest is tax deductible on a loan or line of credit up to $50,000. Get together with a professional tax planner to ensure that you are up to speed on the latest laws that may apply to your situation.
Sandy Sarconi is a living legend in southern California, who has published many articles focused around home equity lending. Over the last few years, Sandy has been a loan product consultant helping to develop cutting edge loan products for companies like Bridge Capital, BD Nationwide Mortgage, and several others. Today Mr. Sarconi is an account executive with Irwin Home Equity.
If you would like to read more helpful articles online, visit Nationwide Home Equity Loans & Credit. To get more eqsecond mortgage advice & finance tips, please contact the loan team to learn more about program updates and the approval process for 125% second mortgages and home equity loans.
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