Mortgages & Loans
What is a Home Equity Line Of Credit ?
A home equity line of credit is a specific line of credit that you apply for and then can reuse at your discretion. The equity in your house is used as collateral. Most line of credits allow disbursements by checks or credit card. Interest expense is calculated on the outstanding balance, not the maximum credit line negotiated. Generally, the interest expense is deductible as mortgage interest as a itemized deduction on IRS Schedule A.
Need Professional Help?
If you need help with "Mortgages & Loans" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.