Mortgage Interest

What Does Mortgage Interest Mean?
The interest charged on a loan used to purchase a residence. Mortgage interest is charged for both primary and secondary loans, home equity loans, lines of credit, and as long as the residence is used to secure the loan.

Mortgage interest is deductible on form 1040.

Investopedia explains Mortgage Interest
Mortgage interest is one of the major itemized deductions personal taxpayers can have. Only the mortgage interest on the first $1 million (aggregated) of a first or second home purchase can be deducted on the Schedule A.

Mortgage interest on rental or investment properties can be deducted on Schedule E.

Related Terms

1040 Form
Itemized Deduction
Mortgage
Principal Residence
Qualified Mortgage Insurance Premium
Schedule A
Second Mortgage
Seller-Financed Sale
Seller-Paid Points
Shared Equity Finance Agreements
More Related Terms

Related Links

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