Interest on home equity loans is only deductible if the funds were used to buy, build, or substantially improve the home securing the loan.
Check your settlement statement for any pro-rated property taxes you reimbursed to the seller at closing; these are often deductible even if they aren't on your Form 1098. deductible home buying expenses
Topic no. 504, Home mortgage points | Internal Revenue Service Interest on home equity loans is only deductible
: You can deduct interest paid on up to $750,000 of mortgage debt ($375,000 if married filing separately) for a first or second home. 504, Home mortgage points | Internal Revenue Service
: If you paid "discount points" to lower your interest rate, they are often fully deductible in the year you paid them, provided the loan is for your primary residence and meeting other IRS criteria. Nondeductible Closing Costs