What are the tax considerations associated with refinancing and home equity loans?
Generally, interest paid on loans to acquire an existing home or to construct a new home is tax-deductible, with certain limitations. In addition, interest paid on refinanced mortgages is deductible (also subject to certain limitations). From 2018 to 2025, the deduction for home mortgage interest is not available for home equity loans and lines of credit, unless they are used to buy, build, or substantially improve the taxpayer's home that secures the loan.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.
The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.
Investment advisory services offered through Cornerstone Wealth Group, LLC dba Cornerstone Wealth, an SEC registered investment adviser.