Generally, interest you pay on a home mortgage can be deducted on your return as long as:
- The proceeds from the mortgage were used to buy, build, or improve your home AND
- The loan is secured by your main or second home.
This includes interest for first and second mortgages, home equity loans, and refinanced mortgages.
You typically should receive Form 1098 from your lender with an amount in box 1 listing the amount of mortgage interest paid.