I ended my forbearance period for my mortgage with my lender back in 2021. It started in 2020 and extended into mid 2021. I did this by paying off the balance of interest accrued with a refinance (cash out). Therefore, I received 2 1098's for last year's mortgage interest... one from my previous lender where I had the forbearance period and one from my current lender that I used to refinance.
My mortgage interest was much higher in 2021 due to the interest payments essentially being delayed from 2020 up until mid 2021. For the sake of simplicity, let's say a typical year without forbearance is about $10,000 in interest for my mortgage. In 2021, my interest paid was $20,000... accounting for most of 2020 and part of 2021.
My question is, when I deduct my mortgage interest in my taxes, am I hitting a limit of the amount I can deduct? Even though it shows $20,000 in interest deductions, it isn't really affecting my refund that much.
Thanks in advance!
