We bought our home with lender A in 2017. We refinanced the loan with lender A in 2020. Lender A sold the refinanced loan to lender B in 2020 before we ever made a payment on it.
We received THREE 1098-t forms for 2020.
The first is from Lender A and covers the original loan/payments up to the refinance date.
The second is from Lender A and only contains the interest paid for the few days between the refinance closing and when the new loan payments began.
The third is from Lender B and covers all payments made on the new loan after the refinance date.
I'm not sure how to answer these following two questions for each of the 1098-t forms because the wording is confusing me. Specifically when it refers to a loan being refinanced...is it talking about a loan that was the result of a refinance? Or the original loan that got refinanced? Thanks so much.
Q1: Was this loan paid off or refinanced with a different lender in 2020?
Q2: Is this loan a home equity line of credit or a loan you've ever refinanced?
1)Yes, this is a loan I've refinanced or a home equity line of credit (HELOC). Learn more
2)No, this is the original loan I used to buy or build my home.
This is how I was thinking of answering them...please correct as needed!
First form
Q1 Yes (got refinanced...technically not with a different lender though)
Q2 No (original loan)
Second form
Q1 No
Q2 Yes (refinanced)???
Third form
Q1 No
Q2 Yes (still the refinanced loan)???
