Refinancing (Mortgage or HEL) and tax implications
I am looking to looking to cash-out re-finance my current mortgage. I looked into mortgages and they are anywhere from 70-75% LTV. I was told by a local bank that they can do a Home Equity Loan (HEL) at LTV 80% and the only requirement is the Appraisal Fee. Obviously I want as much back as possible to move on to the next property, but I am unsure how a HEL will be handled come tax season. With the new laws, will obtaining a HEL handcuff me from taking the Interest deduction or if the property is a rental than I can deduct the HEL because it would be looked at as a business expense? Thanks for the help.