It depends. The amount of interest that you can deduct depends on when you took out the loan, the amount of the loan and what you use the money for. When you refinance a home equity loan to get a fixed rate loan, you are just getting a new loan to pay off the current loan. Generally, you are eligible for the same tax deductions that are available when you refinance as when you took out the loan.
For more information, please review the TurboTax articles Mortgage Refinance Tax Deductions.
There are requirements that you must meet to deduct the loan interest:
- Your loan must be secured by your main or second home
- Your loan must have been used to build, buy, or substantially improve the home that you used to secure the loan (You cannot deduct the interest if you used it for personal expenses.)
- The total of your mortgage debt (acquisition and home equity) did not exceed $1,000,000 if you are using the Married Filing Jointly filing status since you secured your loan in 2016.
For more information, please review the TurboTax article Are Home Interest Loans Deductible On My Taxes?
IRS Publication 936 Home Mortgage Interest Deduction provides additional information.
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