No, it is asking about the proceeds. Proceeds would be the amount of the cashout you received. TurboTax knows that the prior loan is being paid off. The purpose of the question is to find out if you used any of the proceeds for anything other than your home. The law has changed and you can no longer claim the interest on funds used from a refi to consolidate bills, purchase a car, etc. The cashout has to be used to improve your home.
