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    Tricky1549's Avatar
    Tricky1549 Posts: 126, Reputation: 2
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    #1

    May 25, 2007, 12:19 PM
    Equity Loan Interest
    How much of a home equity loan can I place on my primary home and still be able to deduct the interest? I paid $382000.00 for it, have a $70000 on now and need to take out
    Another $110000.00. Its worth $750000.00 Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    May 26, 2007, 07:20 AM
    The limit is generally $100K on a second loan. You can get around that by refinancing the primary loan.

    What interest rate are you paying on the first loan?
    Tricky1549's Avatar
    Tricky1549 Posts: 126, Reputation: 2
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    #3

    May 26, 2007, 10:19 AM
    It's 5.01% with $213000.00 to go. Too low to refi. The second is 5.625% Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    May 27, 2007, 11:28 AM
    Glad to help!
    Tricky1549's Avatar
    Tricky1549 Posts: 126, Reputation: 2
    Junior Member
    		  
    #5

    May 27, 2007, 12:00 PM
    Would it matter if the first 2nd home equity loan paid off a mortgage on a 2 family investment property? Tho old mortgage was 8.875%. Which it did.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #6

    May 27, 2007, 02:39 PM
    No, it would not, because the 2 family investment property did NOT secure the 2nd home equity loan.
    Tricky1549's Avatar
    Tricky1549 Posts: 126, Reputation: 2
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    #7

    Jun 5, 2007, 03:48 AM
    The loan is being used to pay for my sons college, would any of the interest by deductible?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #8

    Jun 5, 2007, 04:18 PM
    No. Those are special category loans that are reported to the IRS. If you claimed the interest as stident loan interest, there would be no audit trail to verify the interest paid, and the IRS would challenge it.

    Sorry!
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