(866) 508-4326Apply Now

Changes in Tax Reform 2018 and How You Can Consolidate Your Loans

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.