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March 30, 2021
Question

Home equity loan to pay off mortgage balance

  • March 30, 2021
  • 1 reply
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I tried to refinance my mortgage but was told by three banks that the size of the loan was too small. Finally, my credit union gave me a home equity loan to pay off the $27,000 mortgage. Is the interest on that loan deductable?

    1 reply

    March 31, 2021

    yes because you simply swapped one loan for another and did not take 'cash out'