What about this TIP?
"If the property that secures the loan is
your home, you generally do not allocate
the loan proceeds or the related
interest. The interest is usually deductible as
qualified home mortgage interest, regardless of
how the loan proceeds are used. For more information,
see Pub. 936."
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/pub/irs-pdf/p535.pdf">https://www.irs.gov/pub/irs-pdf/p535.pdf</a> at p. 12
