If your "acquisition debt" is $160K now, it remains 160K after the refinance, unless you use some of the money for "substantial improvements."
Assuming no improvements, then in the first month, your interest will be 160/245, or 65.3% deductible. In the second month, it might be 160/244 or 65.5% deductible, if your payment included $1000 toward principle. Turbotax will help you calculate this on your tax return.
