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Can you write off a home equity line-of-credit like you would a first or second mortgage on your tax returns?
You may write off up to 100,000 dollars. Also, the interest expenses you pay on a home equity loan may be deductible no matter what you use the money for. The deduction can save you money on your taxes on your return as long as you itemize your deductions on Schedule A of Form 1040. If you claim your standard deduction, then you can never deduct the interest expenses that you paid on your home equity loan.
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Equity is the value of your home less the amount owed on the mortgage. A home equity loan is a loan secured by the equity in your home. Your lender will use an assessment to d…ecide your home's value and the amount of equity available to abstract. If the available equity exceeds your mortgage balance, you can use an equity loan to pay off your mortgage. If your mortgage exceeds the available equity you cannot use the equity to pay off your existing mortgage.
Answer The difference is pretty simple, a 2nd mortgage is just that it's a mortgage that is in 2nd lien position. Basically if god forbid say a forclo…sure took place, that mortgage doesn't get paid off until the first lien mortgage is cleared. A home equity line of credit or HELOC can also be a 2nd mortgage since it is a lien on the property but it can also be a 1st lien mortgage if your home is completely paid off. A HELOC works like a credit card basically except in this case the house is collateral. A HELOC is basically a revolving line of credit on your home and you use it like a credit card, you make monthly payments which are interest only, you only pay interest on the money you are using at the time. If you take out say a 20,000 heloc and are only using 10,000 of it then you pay interest only on the 10,000, you have a minimum payment like a credit card and you can put money towards the principle to pay it down. Money that is paid off can be used again and this can go on for a 10 year period after which the heloc turns into a 20 year loan and you begin paying it like a normal mortgage, if there is a balance remaining. The rate is usually prime plus a certain percentage which is based on the amount of money being financed, you credit, and the loan to value percentage. It's a great alternative to doing a cash out refinance if you have a good interest rate on your first mortgage, I do many helocs and in most cases I do them with no closing costs at all.
Can you take out a home equity loan on a house if you are not on the first mortgage but are on the deed with your parents?
Answer Yes but your parents being on the deed will have to also sign.
What should you do if you have a second mortgage on your home and you owe 100000 between the 2 mortgages and the house is worth 85000 but you would like to pay off some credit cards?
Answer you are in upside down then. I am surprised you could have mortgaged for more than the house is worth
Can a home equity line of credit be used to pay down the principle and remove private mortgage insurance on a first mortgage?
Answer Yes, assuming you have enough equity in the home to get a line of credit. But, if you had enough equity there should not be any PMI. 4lifeguild
Answer Presumably your speaking of federal income taxes? Getting a loan, secured by property or not, are never a taxable event. (Not paying it …off can be). When you sell a home, you MAY be taxable on the gain on sale although there are many exclusions available for this too. (To calculate the gain, the loan itself would NOT be considered part of your basis - that is the amount you have invested and above which you have gain. However, if it was used to pay for improvements to the property, those improvments generally would increase basis).
Is it possible to get a mortgage on a second home that includes enough money to pay off the mortgage on the first house?
You could take out a mortgage on a second home to payoff the mortgage on your primary residence if you have sufficient equity. I guess the question would be, why would you wan…t to do that? Generally, you are going to get better terms on a mortgage for an owner occupied residence vs. a 2nd home all else being equal.
You sold your house in a short sale The first mortgage was forgiven but the second was an equity line The bank said you had a mortgage dificiency Can you file bankruptcy now for the deficiency?
Yes, you can file a Chapter 7 to have the debt liquidated or a 13 to go into repayment.
Can you deduct interest paid on a second home loan not a second mortgage but an actual second home like a lake house can you deduct the interest from your taxes?
Short answer is yes, your allowed to dedcut mortgage interest on more than one home. But of course, there are lots of qqualifications. See page 2 and on of this als…o linked below. http://www.irs.gov/pub/irs-pdf/p936.pdf
Collect like terms: 11c+6d-5c-8d = 6c-2d
If you have zero equity (both loans combined and individually are more than the home value) then the only option available is to seek refinance or modification options with yo…ur existing lender. Since they already own the risk, they don't assume further risk for working with the "underwater" property. No new lender will be able to finance a home without equity regardless of CH7 status. Equity aside, most lenders require 2 years to have passed from the CH7 discharge date.
I am assuming you mean that you own the house outright. The answer (provided you own the home without a mortgage) is yes. Home equity loans are designed for people who wish to… borrow against the equity in the home. Remember, you have to own the home in order to use equity. This means your name has to be on the deed. (See related link below for more information.)
A home equity line of credit can be taken out and used to pay off anything you need. However, if the borrower cannot pay it back, they could end up worse then they started.
Mortgage rates in the United Kingdom are historically low. For a fixed rate loan, borrowing with good credit, the rate can be as low as 1.75%. Rates are slightly lower if ap…plying for a variable rate loan.
An equity home loan mortgage is similar to a second mortgage where it is possible to borrow on the equity of a home. This helps reduce financial pressure like facing a forecl…osure on a home.
Most financial or banking websites have home equity mortgage calculators. They are offered as a courtesy so you are not required to have an account with them in order to use t…he calculator.