Regarding home equity debt, the tax law eliminates the deduction for interest. In other words, with the new tax reform, a home equity line of credit (HELOC) will no longer be tax deductible. While HELOCs are no longer tax deductible, cashing out in a first mortgage is tax deductible.
With that being said, if you currently have a second mortgage, it would be beneficial to consolidate that second mortgage that you already have into a first mortgage. You can do so by choosing a low-cost or no-cost refinance loan option to consolidate into one loan.
In addition, for new buyers, the $1 million limit on deducting interest from your mortgage debt has dropped to a limit of $750,000 for a first and second home.