I am aware of the $100,000 limit on the deductibility of interest for home equity loans. My question is if I were planning on obtaining a single home equity loan for, say, $110,000, would the $10,000 excess prevent me from deducting the interest otherwise allocable to the $100,000 principal amount? In other words, would I need to get one home equity loan for $100,000 and a second separate loan (unsecured or otherwise) for the remaining $10,000 in order to preserve the deductibility feature for the mortgage interest on the $100,000 loan? I have asked several people and have not gotten a clear answer. Any advice would be greatly appreciated as I finalize my financing plans. Thanks,
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