We refinanced our home in 2020, with the same company as the original loan. However, we did not meet the amount of $375,000. Do I still combine the information from both 1098 forms? Also, the refinanced outstanding principal was a little higher than the outstanding principal on the original loan. Which amounts do I use?
combine them for simplicity.
the deductible portion is the old balance divided by the new balance
over time, the new balance will go down, so that 100% of the interest is deductible,