Anna and Bob bought their home for $250,000 in 2001. Since moving in they have completed the following:
Pool $25,000
Security System $ 6,000
Landscape $ 4,000
Drapes $15,000
Their 2001 loan was at 10% and interest rates are now at 7%. Their home is now worth $400,000. Their lender will refinance $320,000 (80% of market value). How much can Anna and Bob refinance and still deduct all interest on their income tax?

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The Answer of Anna and Bob bought their home for $250,000 in 2001. Since moving in they have completed the following:
Pool $25,000
Security System $ 6,000
Landscape $ 4,000
Drapes $15,000
Their 2001 loan was at 10% and interest rates are now at 7%. Their home is now worth $400,000. Their lender will refinance $320,000 (80% of market value). How much can Anna and Bob refinance and still deduct all interest on their income tax?

Anna and Bob Bought Their Home for $250,000 in 2001