Home Equity Loans

Unlike other consumer loans such as credit cards and auto loans, interest paid on home equity loans is generally deductible. Home equity loans may be used for any purpose—such as paying off consumer loans.

The loan must be for an amount equal to or less than the equity in your home, up to a maximum of $100,000. Remember, these loans are secured by your home, so you could lose your home if you default.

Repay personal debt or replace it with a home equity loan to avoid nondeductible interest payments.