Simplified problem:
- I purchased a house in 2017 with a $300K mortgage. I took out a HELOC and used $150K for Home improvements.
- In 2020 I refinanced the house (Lender X) and combined the two loans into a single load for ~$450K
- Last year (2022) my loan was sold to Lender Y so I have two 1098s
Questions:
1. TurboTax asks me if each loan is a "refinance of a previous loan". I assume I answer YES on Lender X and NO on Lender Y. Correct?
2. For Lender X (the refi) TurboTax asks "Since you took this loan how much has been spent to buy, improve, or build the home it is secured by". I made no additional improvements. Is the number I enter $450K or Zero?
