Thank you for your help. I interpret that section slightly different than you do and I'm wondering where you got the example in your response from as I don't see that specifically in here. The paragraph below says "the balance of the old mortgage principal". Considering that there were two mortgage principals and the addition of those two is higher than my new mortgage principal, it seems that this could definitely still apply to my situation. Since I don't have any additional debt (compared to the combination of the two old mortgage principals). Both previous loans were secured by the individual properties. My new loan is also secured by my home (and, if it matters, the amount of the principal is the same or lower than my initial loan plus major improvements we put into our primary home). Am I not interpreting this correctly? The paragraph below doesn't seem to clarify whether it's one mortgage refinanced into one mortgage).
The paragraph says:
Refinanced home acquisition debt.
Any secured debt you use to refinance home acquisition debt is treated as home acquisition debt. However, the new debt will qualify as home acquisition debt only up to the amount of the balance of the old mortgage principal just before the refinancing. Any additional debt not used to buy, build, or substantially improve a qualified home isn't home acquisition debt.
