<p>Some banks lately it seems, like to send out letters to home owners stating their home is not worth as much as they originally thought, so they “reduce” the amount available on the HELOC. Check with your bank & make sure this has not happened to you! </p>
<p>We got such a letter last year! Well, it was too late for the bank, we had already used it! (We were glad that we had used it for tuition while it was available to us!) So now we are “upside down” according to the bank! </p>
<p>Yes, the interest is deductible, check with your professional tax preparer.</p>