My house was paid in full and I took out an equity loan. Is that considered the same as refinancing my home?

[heath0667]

Is an equity loan considered the same as refinancing on a paid off mortgage?

[Opus 17]

Yes.

[CatinaT1 · Accepted solution]

It could be, it depends on what the question is referencing. Is this to see if your loan interest is deductible?

If so, this link will help you determine if the interest is deductible:  Home Mortgage Interest Deduction

If you have interest on a home equity loan, the proceeds are only deductible if they are used to buy, build, or substantially improve the home. Since you already own your home, it would have to be used to improve your home (remodeling, etc). If you simply did a cashout equity loan and used the proceeds for other purposes, it is not deductible.

[heath0667]

Thank you for explaining this to me.  It was a cash out so not deductible.