question.jpgIn Federal Income Tax

What is home mortgage interest?

Home mortgage interest is the related to any loan which is secured by your home. This loan is most often a mortgage on your principal residence, but it can also include a second mortgage on the principal residence, a mortgage on some other property you own, a line of credit secured by your home or a home equity loan. Home mortgage interest is generally deductible if you itemize your deductions (rather than taking the standard deduction), if the mortgage is a secured debt on your principal residence or a secondary home and if you are legally liable for the lien (which means you can’t deduct payments you make for your brother’s mortgage unless you are a signatory on that loan).