Yes, your home mortgage is secured by your home. Secured debt is tied to a specific asset that is used as collateral for the debt.
- If you default on your mortgage payments, your mortgage company can seize your home.
You may be able to deduct your mortgage interest. In addition to itemizing, these conditions must be met for mortgage interest to be deductible:
- The loan is secured, which means the lender has some kind of guarantee of payment, usually in the form of property. If a borrower defaults on payments, the lender can seize the property that’s securing the loan. If you’re buying or refinancing a home, especially if it’s your first home, the loan is usually secured by the home you’re buying or refinancing