Box 7 is supposed to be checked for a mortgage securing the property you live in. If the loan is for another property, that address should be in box 8. Only tell Turbo Tax that box 7 is checked if it is. Related to the question about what you did with the money - interest is only deductible if the loan was used to buy or improve the home. If you used the money to buy a car or go on vacation, it isn't deductible. That is why the question comes up. This is usually only relevant if you have a Home Equity loan or line of credit vs. your original mortgage.
