On Feb 17, 4:07 pm, spop...[at]speedymail.org (Steve Pope) wrote:
- quote -

Hi Steve ,

yes I did consider this , but I need "second" to have as small as
possible monthly payment ( and that is where interest only HELOC comes
to play )
due to my restricted monthly cash flow
Again thanks to everyone who took time to answer my question

sndobo

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sndobo[at]gmail.com wrote:

- quote -

No, a bank HELOC in and of itself has no particular deductibility limit
associated with it.

- quote -

As has already been answered, the interest on refinanced acquisition
debt is still deductible.

Part of the problem is that what a bank calls "equity loan", "first", or
"second" mortgage, etc., has nothing to do with what the tax folks
consider to be either acquisition or equity debt. Another part of the
problem is that the various balances you amortize or pay off under the
repayment terms of your loans do not necessarily match the balances of
acquistion and equity debt for tax purposes.

-Mark Bole

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On Feb 17, 2:33*pm, Alan <sfcnm-...[at]yahoo.com> wrote:
- quote -

Alan ,

thanks a lot !!
Yes , that is the case .

sndobo

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<sndobo[at]gmail.com> wrote:

- quote -

It makes perfect sense to get a conforming loan up to the
conforming loan limit (which depends on where you live), and a
second loan for the rest of the money you need.

What you might want to consider -- probably you've already
looked at this -- is getting a conventional
second mortgage loan rather than a HELOC. HELOC's are
(almost) all variable interest rates and that rate might
go up. (I'm inclined to say, will go up.) A conventional second
mortgage could be fixed rate, could be interest only with a five
or seven year balloon, and might save you some money. Make the second
loan as small as you can is my advice.

Good luck --

Steve

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sndobo[at]gmail.com wrote:
- quote -

grandfathered debt, then when you refinance with debt secured by
the house, the new debt is still home acquisition debt and/or
grandfathered debt up to $600,000. The interest you pay on the
two loans would be tax deductible.

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On Feb 17, 1:09*pm, "Stuart A. Bronstein" <spamt...[at]lexregia.comwrote:
- quote -

Stu,

thank you for your answer , but still not sure if I could do it or
not
As for why would I ever want to do this , it goes like this ( numbers
are different from my previous example where I was rounding them
down )

Today ----> $645,000 interest only mortgage due to reset in less than
a year ( [at] 5.25% )
if I try to refinance the whole amount I go "under" super jumbo
category and rates are much higher at that level , but if
I split into two parts ( $415,000 30 years + $235,000 HELOC ) I get
much much lower rate on the first one ( now it is not jumbo but
conforming )
and I could get HELOC for prime -0.5% )

Again thanks for taking time to answer my question
sndobo

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sndobo[at]gmail.com wrote:

- quote -

Why in the world would you want to do that? Your interest rate will
probably go up (or higher than if you refinanced fully as another 30
year mortgage).

If you're looking to pay it down more quickly, you can do that with
your current mortgage. Just send in the extra amount you want to pay,
and it will reduce your principal balance and thus the amount of time
you have left to pay.

- quote -

Since it is all secured by the house, you should be able to deduct all
the interest. But someone who knows more than I about this kind of
thing will correct me if I'm wrong.

Stu

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Hi ,

I would really appreciate any help with following . I am thinking
about refinancing my mortgage and
one of the options would be following :

existing 30 year mortgage $600,000 ----> refi into two

first mortgage 30 year $ 400,000 + HELOC $200,000

My question is this :

I know that HELOC has limit for mortgage interest deduction ( at
$100,000 ) , but in my case HELOC
would not be used to "take" money out of the house , but as a part of
the loan . I was wandering if anyone could tell
me if this limit would apply to my "case" , or I would be able to
deduct interest on the whole $200,000

Thank you very much
sndobo

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