USA Do I need to prove a private loan is against equity?

[LA Man]

I have $250,000 left on my mortgage and I am about to pay it down by $100,000 via a private loan through a friend.

Is there any special paperwork I need to file to ensure that this loan is against the equity in my house so it qualifies for interest deduction or can I just file Int form?

Thanks in advance for any input or links to where I can find this info.

 

[kirby]

Unless your friend will get a secured interest in the house (a true second mortgage) , you will have created a personal loan for the $100K. There is NO interest deduction for you in a personal loan. Go consult with a tax person to get a better solution for what you want to do.