Does consolidating an Equity Loan during a refinance with the same lender qualify as Cash Out?

dplocke123 · ‎June 3, 2019

Vanessa · ‎June 3, 2019

Yes, it would be a cashout. Depending on what the Equity Loan was previously used for will determine whether or not that portion of the loan has tax-deductible interest or not.

If the loan was used for anything other than to buy, build or substantially improve your home the interest on this portion of your mortgage will not be deductible.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

Vanessa · ‎June 3, 2019

Yes, it would be a cashout. Depending on what the Equity Loan was previously used for will determine whether or not that portion of the loan has tax-deductible interest or not.

If the loan was used for anything other than to buy, build or substantially improve your home the interest on this portion of your mortgage will not be deductible.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Expert does your taxes

Do it yourself

Resources

Support

Does consolidating an Equity Loan during a refinance with the same lender qualify as Cash Out?