When obtaining a home equity loan, you can make a tax deduction on the interests paid for the second mortgage. It’s necessary to note that your interest deduction from the second loan is limited. Generally, the interests only on the first $100,000 of a second mortgage can be deducted.
Still you have some options. If you need this means for house improvements or for purchasing a new home, it’s almost $1 million or the property price that can be deducted.
You can also use a home equity loan in your debt consolidation program. In such a way the interests you cover also become tax deductible. This can help you to reduce the amount of debt and return it quicker.
Anyway, before submitting a second mortgage, make sure you deal with a reliable lender and you will not lose your property due to the illegal agreement. That’s where Personal Money Service comes to help you.
Read more about it here.