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June 3, 2019
Question

Does paying off a credit card or car loan with my mortgage refinance affect how much mortgage interest I can deduct?

  • June 3, 2019
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1 reply

June 3, 2019

Yes, you can only deduct the interest on the portion of the mortgage loan or line of credit that was used to buy, build or substantially improve your home. This is a new requirement for tax years 2018 through 2025.

You cannot deduct the amount of interest attributed to the amount of the loan used to pay off your credit card and car loan.  

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