Question by Madelaine: Can interest for non-secured real estate loans be tax deductible?
My husband works for a large financial services firm. We are getting a mortgage for our first home purchase through this company and one “benefit” they offer to employees is, if you get a mortgage through the company, they also offer a $ 2500 or $ 5000 (your choice) *non-secured* loan for a five year term. During that five years, you pay only interest and they pay principle. After five years, you pay both P&I. The catch is that the entire loan amount must be used toward a downpayment or closing costs for your refinance or purchase. Since this loan is being used 100% for home purchase purposes, is any of this interest tax deductible?
Best answer:
Answer by frak1a12345
The interest is not mortgage interest because it is not secured by real estate therefore it is not tax deductible.
Give your answer to this question below!
It is deductible….Just like the interest on HELOC’s and similar 2nd mortgage instruments are also deductible…