Based on your numbers, the answer is yes to that question. Here is a breakdown:
The IRS allows you to treat the new loan as "Grandfathered" (pre-December 15, 2017) as long as the new debt was...
See more...
Based on your numbers, the answer is yes to that question. Here is a breakdown:
The IRS allows you to treat the new loan as "Grandfathered" (pre-December 15, 2017) as long as the new debt was used to refinance "acquisition indebtedness." Original Mortgage ($675,969): This is clearly acquisition debt.
Mortgage Assistance ($96,440): If this was a subordinate lien or "silent second" used to stay in the home or cover the original purchase/improvements, it is also considered part of the debt used to "secure" the residence.
Cash to Close ($17,000): Since you put money in rather than taking money out, you didn't increase the debt for personal spending (like credit cards or a vacation).
Because your total new loan is simply replacing the combined total of your previous home-related debts, the IRS views this as a "Refinance of Acquisition Debt." You are still within the $1 million grandfathered limit (pre-2018 rules) rather than the lower $750,000 limit.
To summarize.
Original Loan Date: Use the 2017 date to keep the $1M limit.
Is it a Refinance: Yes.
Did you take cash out: No (putting $17k in is the opposite of a cash-out).