What is 'Mortgage Interest'
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.
BREAKING DOWN '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.