Homeowners poised to start tapping $14.4 trillion in equity, research says

The research found about 70 million homeowners would likely qualify for a home equity loan or line of credit.

However, there are some things to consider before signing up.

For starters, the tax break you could get for using home equity this way is no longer guaranteed.

As of this year, you can only deduct the interest on home equity debt if it’s used to buy, build or improve your home. You also can only write off interest on up to $750,000 in home loans, which includes your mortgage and any home equity loan or line of credit.

So if you tap your home equity to pay off, say, credit card debt or student loans, you cannot deduct the interest. However, you still might be able to pay off the debt faster if the interest rate is lower than what you were paying.

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