Quote:
Originally Posted by ljones190
That is also my understanding that you can not deduct bond costs on your federal income tax. We decided to get a HELOC to pay off the bond. The Heloc is not fixed and will rise with the prime rate, no danger of that happening for the short term. We have not done it yet since we do not want to pay the off the bond until we move to TV after retirement, hopefully 2012. The Heloc would be tax deductible and the only risk is the non fixed rate interest rate. Sorry HELOC= Home Equity Line of Credit.
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Often there's a loan option with a HELOC agreement. You can lock in a fixed rate loan if you sense rates are on the rise. The loan rate will be a bit higher than the adjustable but it could be worth it. Rate's are all-time low now. When they move up, there's a good chance it'll be far and fast.