How taxpayers can deduct interest paid on Home-Equity Loans

With tax day behind us, it’s easy to begin thinking about home improvements?

When the new tax law was passed, many people thought that the interest from home-equity loans was not deductible.  That’s not true. It is possible to utilize home equity to buy, build or  substantially improve a taxpayer’s home and even a second home while deducting interest. The cap that previously existed on home equity loans no longer applies as it previously did and the interest allowable for the newer deduction is $750,000 for residential loans taken out after Dec. 15, 2017.

The interest from a home-equity loan; however, is not deductible for personal expenses such as reducing credit card debt or a student loan balance. It might not be wise to purchase a car either by taking a home-equity loan. You’d only be exchanging one type of debt for another. It does make sense to improve your home using a home equity loan. In a time when housing costs are increasing, it makes sense to invest in your own home and deduct the interest in the process. There are some nice opportunities to secure a home-equity loan with your preferred lender.

Happy Home Improvement Time! For more information or to send me a question or to share some wisdom, download the PeakApproveMe app, visit PeakMtgNW.com, email me at
MPattullo@Peakmtg.com or give me a call at 360.607.9312.

We lend where we live,

Michael Pattullo
Peak Mortgage
Mortgage Advisor • MLO# 229675 • Peakmtgnw.com
360-607-9312

P.S. Readers – ank you for continuing to email me at MPattullo@peakmtg.com, I appreciate it!