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Don't worry: HELOCs will survive despite new tax law

Don't worry: HELOCs will survive despite new tax law

A close reading of the final language rushed through Congress last month reveals that interest-deductible HELOCs and second mortgages should still be available to homeowners provided they qualify on two criteria: they use the proceeds of the loan to make "substantial improvements" to their home, and the combined total of their first mortgage balance and their HELOC or second mortgage does not exceed the new $750,000 limit on mortgage amounts qualified for interest deductions. (The previous ceiling was $1.1 million for the first mortgage and home-equity debt combined.)

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