You know the one, the one you take to help buy a car, fund tuition, or actually fix up the house.
When the credit card interest deduction went away under Ronald Reagan, consumers opened up Home Equity Lines of Credit in response, the interest on which was deductible. Now that HELOC interest deductibility is going away, expect those HELOCs to be refinanced under new first mortgages to recapture that.
Also expect this to impact consumer spending, negatively.
Reported here:
Individuals who take out home equity loans will no longer be able to deduct that interest under the new bill.
