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gateway_station
New Member

Does paying off a credit card or car loan with my mortgage refinance affect how much mortgage interest I can deduct?

 
1 Reply
AlanT
Expert Alumni

Does paying off a credit card or car loan with my mortgage refinance affect how much mortgage interest I can deduct?

Yes, you can only deduct the interest on the portion of the mortgage loan or line of credit that was used to buy, build or substantially improve your home. This is a new requirement for tax years 2018 through 2025.

You cannot deduct the amount of interest attributed to the amount of the loan used to pay off your credit card and car loan.  

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