I refinanced my mortgage in 2020 and only took out cash to cover some of the closing costs. When responding to the question about how much of the loan was used to buy, improve, or build the home it's secured by, I'm entering the amount needed to pay off the previous loan, correct? The question is confusing as I didn't "purchase" the home with the refinanced funds, but did refinance the home, which I guess to the new lender is like the purchased amount, correct? If I put $0 in this field, then I'm not able to include the interest paid as a deduction which is forcing me into the standard deduction instead of being able to deduct more than the standard, which I believe I should be able to do. Please confirm or correct. Thank you.
