▲ 1 r/Mortgages
Apologies in advance if this is in the wrong subreddit.
We own a primary residence, and wanted to purchase a vacation home a few years ago. Long story short, our local lender dropped the ball during the process and we couldn’t close the loan. We scrambled and took out a HELOC on our primary residence, and between that and cash, were able to purchase the vacation home.
Fast forward a few years and the HELOC rate is variable, really above what we would be paying with a mortgage. We want to put a mortgage on the vacation property (~50% LTV cash out refi?) and use the funds to pay back the HELOC.
The new loan won’t really be for a new purchase, it’ll be for paydown of debt. Will the interest on this new loan be tax deductible?
u/BoxThinker — 20 days ago