The mortgage interest deduction is a tax incentive provided to homeowners, allowing them to reduce their taxable income by the amount of interest paid on a qualified home loan. This deduction is a substantial financial benefit for many taxpayers, promoting homeownership.
A residential mortgage is a loan secured against a residential property, such as a house or apartment, primarily used for the borrower's personal housing needs. It allows individuals to finance the purchase of a home by gradually paying off the debt over an agreed period.
A residence that is not one's principal residence. A taxpayer may deduct interest up to certain limits on two personal residences, provided certain occupancy requirements are met.
