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Eddie Thornton - NMLS #123082

For current US taxes, home equity interest qualifies only when loan proceeds bought, built, or substantially improved the same home securing the debt.
Interest is not deductible when home equity cash covered other expenses, like college tuition or a car, even if the loan was secured by housing.
Deduction caps apply across combined mortgage and home equity debt: up to $750K for newer borrowing, or $1M for debt taken earlier.
Itemizing helps only when total deductions exceed the standard deduction: $32.2K joint, $16.1K single or separate, and $24.15K for heads of household.
Before filing, borrowers should review Form 1098 from each lender; it lists prior-yr interest paid on mortgages, home equity loans, and HELOCs.

Home Equity Interest Can Be Tax-Deductible

In Late-Q3, national avg. rates reflected owner-occupied single-family homes, 80% loan-to-value, 30- to 60-day locks, and FICO scores of 620 or higher.
A home equity loan provides one upfront deposit, and borrowers repay it through fixed monthly payments over a term that can reach 30 yr.
A HELOC works like a credit card, with a draw period for flexible borrowing and a repayment period when new borrowing stops.
Because the debt is secured by Real Estate, these options often beat unsecured loan rates, but borrowers also face closing costs that usually run 2%-5%.
Typical qualification calls for solid credit, manageable debt-to-income, steady income, 15%-20% equity, and awareness that rates vary by loan choice and property type.