In some cases, interest paid on a Fixed Rate Home Equity Loan may be tax-deductible. Generally, the loan must be secured by your main home or second home, and the funds must be used to buy, build, or substantially improve the home that secures the loan.
If the loan is used for personal expenses, such as paying off credit cards, covering everyday expenses, or other non-home-related costs, the interest is generally not deductible. Other tax rules and dollar limits may also apply.
This information is for general educational purposes only and is not tax advice. Please consult a qualified tax advisor or CPA to determine whether interest on your Fixed Rate Home Equity Loan may be deductible in your specific situation.
Have more questions about home equity loans? Connect with a Home Equity Specialist at People Driven Credit Union to get your questions answered.
