[Zeke]

I think any money owed as a result of mortgaging real estate is deductible as far as the interest paid goes. And a line of credit is secured by the home, so it's a mortgage.

Technically, the borrowed money is supposed to be used for improvements to the property or close to that idea. Spending money borrowed against a house for a vacation is not what the IRS had in mind when they wrote the guidelines. However, it doesn't seem to be very closely monitored. {People buy cars with equity money all the time, which to me is very stupid unless you really know how to manage money.

For instance, the car will depreciate rapidly, but if you wrap it up in a 30 year loan, that depreciation will look like chump change compared to the payoff.