I have a similar question. I refinance my primary home mortgage to pull cash out to pay off a rental loan at a higher rate. My primary was about $500 and I refi for $627. I don't think I can deduct as interest on my primary house. Can this $127,000 be treated as interest deduction for my rental property even though the security is my home ? Do I use 500/627 % as the primary interest and 127/627 as the rental. Do I need to be able to trace the transactions ?
