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QUICK Financing Guide

Home Equity Tools

How to Read Table

Move along the yellow horizontal row and find your home equity APR.

Then locate down the green vertical column your income tax bracket.

Your Effective Tax Rate is where the two cells intersect.

The Effective Tax Rate is the calculated annual interest rate that you would pay if you deducted qualifying interest charges from your taxes.

Note: most home equity interest charges qualify for tax deductibility, but there are limitations. See your professional tax advisor.

APR   3.75% 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% 5.50% 5.75%
Tax
Bracket		      Effective Interest Rates
15%   3.19% 3.40% 3.61% 3.83% 4.04% 4.25% 4.46% 4.68% 4.89%
25%   2.81% 3.00% 3.19% 3.38% 3.56% 3.75% 3.94% 4.13% 4.31%
28%   2.70% 2.88% 3.06% 3.24% 3.42% 3.60% 3.78% 3.96% 4.14%
33%   2.51% 2.68% 2.85% 3.02% 3.18% 3.35% 3.52% 3.69% 3.85%
35%   2.44% 2.60% 2.76% 2.93% 3.09% 3.25% 3.41% 3.58% 3.74%
APR   6.00% 6.25% 6.50% 6.75% 7.00% 7.25% 7.50% 7.75%  8.00%
Tax
Bracket		  

   Effective Interest Rates
15%   5.10% 5.31% 5.53% 5.74% 5.95% 6.16% 6.38% 6.59%  6.80%
25%   4.50% 4.69% 4.88% 5.06% 5.25% 5.44% 5.63% 5.81% 6.00%
28%   4.32% 4.50% 4.68% 4.86% 5.04% 5.22% 5.40% 5.58%  5.76%
33%   4.02% 4.19% 4.36% 4.52% 4.69% 4.86% 5.03% 5.19%  5.36%
35%   3.90% 4.06% 4.23% 4.39% 4.55% 4.71% 4.88% 5.04%  5.20%
 
APR   7.75% 8.50% 8.75% 9.00% 9.25% 9.50% 9.75% 10.00% 10.25%
Tax
Bracket		      Effective Interest Rates
 15%   7.01% 7.23% 7.44% 7.65% 7.86% 8.08% 8.29% 8.50% 8.71%
 27%   6.19% 6.38% 6.56% 6.75% 6.94% 7.13% 7.31% 7.50% 7.69%
 30%   5.94% 6.12% 6.30% 6.48% 6.66% 6.84% 7.02% 7.20% 7.38%
35%   5.53% 5.70% 5.86% 6.03% 6.20% 6.37% 6.53% 6.70% 6.87%
 38.6%   5.36% 5.53% 5.69% 5.85% 6.01% 6.18% 6.34% 6.50% 6.66%
 
APR   10.50% 10.75% 11.00% 11.25% 11.50% 11.75% 12.00% 12.25% 12.50%
Tax
Bracket		      Effective Interest Rates
15%   8.93% 9.14% 9.35% 9.56% 9.78% 9.99% 10.20% 10.41% 10.63%
27%   7.88% 8.06% 7.75% 8.44% 8.63% 8.81% 9.00% 9.19% 9.38%
 30%   7.56% 7.74% 7.92% 8.10% 8.28% 8.46% 8.64% 8.82% 9.00%
35%   7.04% 7.20% 7.37% 7.54% 7.71% 7.87% 8.04% 8.21% 8.38%
38.6%   6.83% 6.99% 7.155% 7.31% 7.48% 7.64% 7.80% 7.96% 8.13%
 
APR   12.75% 13.00% 13.25% 13.50% 13.75% 14.00% 14.25% 14.50% 14.75%
Tax
Bracket		      Effective Interest Rates
15%   10.84% 11.05% 11.26% 11.48% 11.69% 11.90% 12.11% 12.33% 12.54%
27%   9.56% 9.75% 9.94% 10.13% 10.31% 10.50% 10.69% 10.88% 11.06%
 30%   9.18% 9.36% 9.54% 9.72% 9.90% 10.08% 10.26% 10.44% 10.62%
35%   8.54% 8.71% 8.88% 9.05% 9.21% 9.38% 9.55% 9.72% 9.88%
38.6%   8.29% 8.45% 8.61% 8.78% 8.94% 9.10% 9.26% 9.43% 9.59%
                     
Tax Publications / Forms
Publication 936: Home Mortgage Interest Deductions click here
Download Publication Form 936 click here
Publication 530: Tax Information for First-Time Homeowners click here
Download Publication Form 530 click here
Download IRS1040, Schedule A: Itemized Deductions click here