Tax law has big impact on home equity loans

The new tax law Donald Trump signed into law just before Christmas will change the game for homeowners who used home equity to finance other big ticket items in their lives. According to CU Journal, “Under the old law, homeowners who took out a second loan of up to $100,000 could deduct the interest from their taxes. That provided an incentive for consumers to use home equity products — instead of other types of loans — to finance everything from car purchases to higher education to the consolidation of credit card debt.”

The change applies not only to new loans but existing home equity loans, as well. Read the full article here.