Understanding Second Mortgages and Tax Deductions

Second mortgages have different tax deductions than an initial mortgage. The government places limits on the amount and circumstances that paid interest can be deducted. The following principles will give you a general understanding of the rules. However, you should check with a tax preparer for specific recommendations for your own tax situation.

Interest That Can Be Deducted

In general any mortgage interest you pay in a particular year can be used as a deduction for that year