I refinanced my home in 2020 and have 3 Lenders, Original, Refi Lender, Lender who bought refi loan. We took out cash with the Refi, I'm confused with this worksheet...

[kgideon71]

I used 95% of the refi loan on the house and 5% on debt consolidation.  This means 95% of my mortgage interest is deductible?  The refi lender only had the loan a few months so the mortgage interest was very small.  Do I have to claim a cash out on the lender who bought my mortgage from the refi lender and apply the 95% to that mortgage interest also?  My tax review is hanging up on the "Home Mortgage Interest Worksheet".

[DMarkM1]

Yes, only 95% of the interest would be deductible.  Yes, the refi loan that was purchased also has the reduced mortgage interest deduction.