From what you say, the interest you pay qualifies as deductible home mortgage interest.
The following is excerpted from IRS Publication 936, Home Mortgage Interest Deduction, which I suggest you read. You can download the Publication for free at:
http://www.irs.ustreas.gov/forms_pubs/index.html.
Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). The loan may be a mortgage to buy your home, a second mortgage, a line of credit, or a home equity loan.
You can deduct home mortgage interest only if you meet all the following conditions:
• You must file Form 1040 and itemize deductions on Schedule A (Form 1040).
• You must be legally liable for the loan. You cannot deduct payments you make for someone else if you are not legally liable to make them. Both you
and the lender must intend that the loan be repaid. In addition, there must be a true debtor-creditor relationship between you and the lender.
• The mortgage must be a secured debt on a qualified home.
For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities. The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment, or other deductible purposes. Otherwise, it is considered personal interest and is not deductible.
Main home.You can have only one main home at any one time. Generally, this is the home where you spend most of your time.
Second home.A second home is a home that you choose to treat as your second home. Second home not rented out. If you have a second home that you do not hold out for rent or resale to others at any time during the year, you can treat it as a qualified home. You do not have to use the home during the year. Second home rented out. If you have a second home and rent it out part of the year, you also must use it as a home during the year for it to be a qualified home. You must use this home more than 14 days or more than 10% of the number of days during the year that the home is rented at a fair rental,