Definition: Debt incurred to buy, build, or substantially improve a qualifying home and secured by that home, for purposes of the federal home-mortgage-interest rules.
Example
A borrower obtains a mortgage secured by the home being purchased.
Keep the distinction clear
The tax treatment depends on the use of the proceeds, qualifying security, applicable limits, and other rules. The loan's marketing label alone does not establish deductibility.
Related terms
Mortgage · Home Equity Loan · Interest
Keep studying
References: IRS Publication 936: home mortgage interest
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