Simply having the loan secured by you home does not necessarily mean that ALL the interest is deductible as qualified mortgage interest.
The portion of the loan that is "acquisition debt", (debt used to buy, build or substantially improve a home), is fully deductible. A portion of that loan not used to buy, build or substantially improve a home, or any other loan that's secured by a home, up to $100,000 for couples filing jointly, is considered "home equity" debt and that interest is also deductible irrespective of what that money is used for. Loan amounts beyond the sum of acquisition debt and home equity debt is NOT deductible, even though that debt is secured by the home.
