No, if the loan is not used to buy, build, or improve, you can't deduct the interest.
As long as a portion of prior loan was used for debt, you will always need to adjust for that portion, when you refinance
For tax years 2018 through 2025, you can only deduct the interest from the amount of your loan that was used to buy, build, or improve the home that it’s secured by.
If you’ve ever used part of this loan to pay for things other than this home, you cannot deduct the interest from that amount of the loan, even if the transaction didn’t take place this year.
Don’t worry, we’ll help figure out what amount of interest you can deduct. Answer the questions on the worksheet accurately so the Turbotax can figure the deductible amount .
Examples of common ways you might have used this money not on your home include:
- Making a down payment on a different home
- Funding improvements on a different home
- Making a payment on a different loan or debt
- Having miscellaneous large purchases
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