I refinanced this year. It was not a “cash out” loan. However, when I did the refi, the lender rolled the amount for the impound account into the new mortgage, so the balance ended up about $9,000 higher than the previous mortgage balance.
does this count as “taking cash out” when I’m deducting my interest?
Also, if it does indeed count as “taking cash out,” I am experiencing some ambiguity in TT as to what counts as using the so called cash I received on the home - is spending it on my taxes enough? On mortgage payments? Or does it have to be on capital improvements?
Thank you community!!
