Colette,
I would recommend that you talk with a financial advisor about the tax question. We deduct the interest on our second property and I am just assuming that this is a federal deduction and therefore the same for everyone. I don't agree with using a home equity line of credit. It makes sense why the bank may suggest this because generally home equity loans are offered at a higher interest rate. We always recommend that you talk with three or four loaning methods including companies that can be recommended by the developer. Our business is to help clients locate the very best second, retirement or vacation property. We have over a decade of experience, don't cost you a penny and have an excellent proven reputation. Please give us a call and see if we can help you with your decision.
Marian Schaffer
The Schaffer Realty Group
877-886-8388 http://www.marianschafferrealty.com
marian@marianschaffer.com

Colette,

The idea of using a home equity loan on the primary residence for other interests is a path that many people are taking today. The loan interest is deductable for tax purposes. We like this option because you are using equity to generate purchasing power with the ability to hold back on your cash reserve.

Good luck,

The "Eckler Team"