What is a Mortgage Deduction?
In the United States, a citizen who owns his or own home is entitled to deduct mortgage interest from his or her taxable income. This tax break is called a mortgage deduction. Essentially, it rewards homeowners by allowing them to keep more of their money and spend less of it paying taxes. However, the mortgage deduction doesn’t qualify as a dollar-for-dollar write-off. Instead, it reduces taxable income. The mortgage deduction is available to taxpayers without regard to whether or not they own more than one property. Interest can be deducted for a primary or secondary residence. Interest on a line of credit or home-equity loan is deductible as well. As the mortgage deduction is only for those paying mortgage loan interest, personal loans are not eligible for this write-off. As with every type of deduction, there are limits. First, you can only take the mortgage deduction for a home loan for which you are personally liable. Second, your main or second home must be the collateral for th
