Most folks know the general rule that the interest on a home equity loan or home equity line of credit usually is tax deductible. Like most general rules, there are exceptions. If you use the money from your home’s equity for anything other than home improvements, like to fund education or purchase a new vehicle, then the interest is not tax deductible. Another exception is if the combined amount of your mortgage and home-equity loan exceeds the fair-market value of your home, you may not be able to deduct all the interest either. If you are unsure, the best advice is to contact a tax adviser for more information.
The home financing experts at Jax Federal Credit Union can help you better understand equity borrowing options. We offer comprehensive financing options from a new or refinanced mortgage, a Home Equity Loan, Line of Credit, or a No Equity Home Improvement Loan. All loans are subject to credit approval.
Information provided by Jax Federal Credit Union