Q: My bank has advised me to lessen my monthly payments by rolling my car loans and my mortgage together into a home equity line of credit. Is this a good idea? It’s an open variable line of credit and the interest rate is low. Will the interest be tax deductible?
A: 1. You have a mortgage (which is not reported as a debt to your credit bureau.)
2. If you roll it into a credit line … the whole amount … credit line and mortgage will be reported to the credit bureau as a debt.
3. Your interest on your residence is not deductible. If you used your credit line for personal purchases, it is not deductible.