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SnatchRabbit posted:Should I take out a home equity line of credit for reasons other than home improvement? I read that in order for the interest to be tax deductible, the line of credit has to be under $100,000. Does this mean, the total amount of debt that we wind up borrowing has to be under $100,000 or that the entire line of credit (even if we don't use the entire amount available) has to be under $100k? The amount you borrow, which is the amount you can deduct, has to be under $100k. They dont care what your total line is, you can only deduct $100k on your taxes. And don't do anything stupid with it, but if you can get a good rate its generally one of the cheapest ways to borrow money if you have equity in a house. Make sure to read the terms very carefully, there are a lot of very different products on offer out there. For example, I have a 5yr interest only HELOC on my house because I only use it for short term things. It has a bubble payment at the end of the 5yr- sure I could likely just refinance it but it would be a great way to get caught with your pants down if there was another loan crisis. greasyhands fucked around with this message at 03:07 on Jan 31, 2017 |
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Jan 31, 2017 02:37
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| # ¿ May 4, 2024 13:31 |
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