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Unlock the equity in your home and turn your dreams into reality with our Home Equity Loans! Whether it’s renovating your kitchen, funding your child’s education, or consolidating debt, we’ve got you covered. Low rates, flexible terms, and hassle-free application process. Make your home work for you.
Rates as low as
5.50% APR*
5 Year Term w/auto pay
No Closing Costs
LOW, FIXED Rate
Rate SPECIAL ends 3/31/2025
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Understanding Home Equity Loan Tax Deductions
A home equity loan can be a valuable financial tool, allowing homeowners to borrow against the equity in their homes. But did you know that the interest on your home equity loan may also be tax-deductible? Here’s what you need to know about qualifying for this deduction.
When Is Home Equity Loan Interest Tax-Deductible?
The IRS allows homeowners to deduct interest on home equity loans and home equity lines of credit (HELOCs) under certain conditions:
- The loan must be used to buy, build, or substantially improve your home.
- The home must be the collateral for the loan.
- The total mortgage debt (including the first mortgage and home equity loan) must not exceed $750,000 for married couples filing jointly ($375,000 for single filers).
What Doesn’t Qualify for Deduction?
Interest is not deductible if the loan is used for personal expenses such as:
- Paying off credit card debt
- Covering medical bills
- Funding vacations
How to Claim the Deduction
To claim the home equity loan interest deduction:
- Itemize deductions on your tax return (Schedule A).
- Ensure the loan was used for home improvement purposes.
- Keep records of loan usage and improvement costs.
Consult a Tax Professional
Tax laws can be complex and change over time. It’s always a good idea to consult with a tax advisor to ensure you maximize deductions while staying compliant with IRS rules.
By using a home equity loan wisely, you can not only improve your home but also enjoy potential tax savings!
*APR- Annual Percentage Rate is based on a 60 month term, and requires auto pay. Rate might be higher based on credit history, cannot be combined with any other discount, and ends on 3/31/2025. but is subject to change without notice. Maximum loan to value is 80% of appraisal value of property. If loan is canceled, or equity requirements are not met, applicant is responsible for the appraisal fee.