What does this does this question mean? "Have you ever pulled cash out from this loan when you refinanced it?"

[gimli1960]

When I refinanced 14 years ago, I had some cash left over after paying off the prior mortgage.  Is this what is meant by the question "Have you ever pulled cash out from this loan when you refinanced it?"  Then what does the following question mean?  "Have you used the money from this loan exclusively on this home?"  The refinance was 14 years ago, and I have no idea what I did with the money 14 years ago.  

[Vanessa · Accepted solution]

The new laws require that you figure out how much of your mortgage balance was used to buy, build or substantially improve your home.

Yes, it is asking if when you refinanced 14 years ago if you used some of the cash for something else.  If you did not use it to pay off your house or do a major remodel or addition to your home, then you will say you DID pull cash out and you did NOT use it exclusively on your home. 

[df_Q]

Suppose the only reason I "took cash out" was because the lender/escrow took longer to close than estimated and I had paid down my original loan further, creating a gap between my new loan and the payoff amount on the old loan.  And suppose I did not specifically spend that extra money on anything specific.  Could I claim that I spent that money on my first mortgage payment of the new loan and therefore claim I did spend the entire amount on my home?

Alternatively, if I made home improvements in a later year, under the new law can that qualify me to say that I spent all of that money on my home?

[DawnC]

If all your mortgages fit one or more of the following categories, you can generally deduct all of the interest you paid during the year.

• Mortgages you took out on your main home and/or a second home on or before October 13, 1987 (called "grandfathered" debt, because these are mortgages that existed before the current tax rules for mortgage interest took effect).
• Mortgages you took out after October 13, 1987 to buy, build or improve your main home and/or second home (called acquisition debt) that totaled $1 million or less for tax years prior to 2018 ($500,000 if you are married and filing separately from your spouse) or $750,000 or less for tax years beginning with 2018. Mortgages that existed as of December 14, 2017 will continue to receive the same tax treatment as under the old rules.
• Home equity debt you took out after October 13, 1987 on your main home and/or second home that totaled $100,000 or less throughout the year ($50,000 if you are married and filing separately) for tax years prior to 2018. Interest on such home equity debt was generally deductible regardless of how you use the loan proceeds, including to pay college tuition, credit card debt, or other personal purposes. This assumes the combined balances of acquisition debt and home equity do not exceed the home's fair market value at the time you take out the home equity debt. Beginning in 2018, the interest on home equity debt is no longer deductible unless it was use to buy, build, or substantially improve your home. 

@df_Q   I am leaving a couple of links below that will hopefully clear things up.  If not, please start a new thread here.  Thanks!

Deducting Mort age Interest

Mortgage Interest FAQs

Can I deduct interest on a home equity loan or a HELOC?