You answer Yes to the refinance and Yes to the cash out, even if you did it in 2020. The cash you took out of the home is considered home equity debt, not home acquisition debt if you did not use it to buy, build, or improve the home. Home equity debt is not deductible.
If you took cash out in 2020, the interest you paid on the portion of the mortgage that is considered home equity debt is not deductible in all future years. This remains true until the entire amount of home equity debt is paid off, which happens when your outstanding mortgage principal is less than the amount used to buy, build, or improve the home.
