John and Cheryl just borrowed $30,000 on a home equity line of credit. The interest rate for the loan is 6.75% for the entire year, and they took out the loan on May 1. John and Cheryl are in the 28% tax bracket. What will be their tax savings for the first year ending December 31st?

Answer rating: 100% (QA)

The interest amount paid towards the home equity loan is considered as the deductible income for tax ... View the full answer