How taxpayers can deduct interest paid on Home-Equity Loans

Posted May 6, 2018 in Real Estate Trends

Mike Pattulo, Clark County WA real estate agent

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, email me at or give me a call at 360.607.9312.

We lend where we live,

Michael Pattullo
Peak Mortgage
Mortgage Advisor • MLO# 229675 •

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