The interest on home equity loans is deductible if you use the loan to buy, build, or improve the home. The loan can't exceed the cap based on tax filing status.

Home equity loans use your home as security ... make sure that you're dealing with a legitimate one. Article Sources Investopedia requires writers to use primary sources to support their work.

In that case, you may face home equity loan prepayment penalties. These are fees you could be charged if you pay off the home equity loan early and they vary a lot by lender. To a ...

Fact checked by Vikki Velasquez Reviewed by Doretha Clemon With a competitive housing market, many homeowners have seen a significant increase in home values. According to an analysis by CoreLogic, U.