Your mortgage may be under the limit. But did you cash out on the refi? If so, and you did not use the cash out money to improve or maintain the property, then the interest paid on the cash out amount is not deductible.
Typically, when you refinance a house and cash out, you can only deduct the interest paid on the amount of the "old" loan at the time you refinanced. Example:
You owe $50K on the property and you refi for $100K, which leaves you with $50K in your pocket. Therefore, only 50% of the new loan was actually used to refinance the property. Only 50% of the interest on the new loan is deductible on SCH A for the life of that loan.
There are things that can change/increase that percentage though. For example, if you used money from the cash out to add on to your home, then that can be included in the percentage of interest you're allowed to claim on the new loan.
