Prior to the Tax Cuts and Jobs Act of 2017, homeowners could claim a plethora of extra tax deductions. But these are no longer an option. After the act’s passage it’s more complicated to get a deduction when you borrow against your home’s equity, but still possible if you meet certain criteria.
Types of Home Equity
There are two main ways you can borrow against your home’s equity. You can take out a home equity loan, or you can take out a home equity line of credit (HELOC). Both allow you to borrow against the equity you have in your home, typically for much lower interest rates than other unsecured forms of debt.