Have a two-part question related to a cash-out refinance completed in 2019:
1. Is the correct calculation of acquisition debt as follows?: (Refinanced Loan Amount - Cash Out) + Amount paid into substantial home improvements = Acquisition debt. Example: (150,000 - 20,000) + 5,000 = 135,000
2. Is there any limitation to when the cash from the refinance can be used for home improvements? In my situation, I used part of the cash but still have plans to use more on forthcoming home improvements. Is there any time frame within which those improvements have to be completed to be included in the acquistion debt?
TIA
