But this gets complicated, to determine year after year what qualifies as 'improving the property', since the new loan is for a long 20 or some years. But I understand what you are saying.
Be aware that percentage remains the same each year, for the life of the loan. But also be aware that it "can" change too. As an example, use my numbers above. With those numbers, only 80% of the interest on the new loan are deductible every year, for the life of the loan.
But let's say 2 years from now in 2024 I install a new Central Air unit in the property at a cost of $5000. Provided I've got the documentation to prove it (the tracing rules to show I used "that" cash out money for this) then that means I can, starting in 2024, claim 90% of my mortgage interest on the loan.
