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How handle this? My mortgage was sold partway through 2018. On-line advice is to enter this as a "refinance", but then points paid on original mortgage are lost.

 
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3 Replies
Leonard
Intuit Alumni

How handle this? My mortgage was sold partway through 2018. On-line advice is to enter this as a "refinance", but then points paid on original mortgage are lost.

The fact that your mortgage was sold by your lender to another mortgage company is not considered a refinancing.  The sale to another mortgage company does not change the terms and conditions of your loan and has no effect on your taxes.  

You will enter your mortgage, as usual, the transfer to another lender does not change how you enter your mortgage information.  You will not enter this transfer in TurboTax as a refinance.

[Edited 04/07/2019 | 11:07 am PDT]

Leonard
Intuit Alumni

How handle this? My mortgage was sold partway through 2018. On-line advice is to enter this as a "refinance", but then points paid on original mortgage are lost.

I have added information to my answer that you may find useful.

How handle this? My mortgage was sold partway through 2018. On-line advice is to enter this as a "refinance", but then points paid on original mortgage are lost.

This is a good idea, but unfortunately if reported as a "new loan" (even though it is not, it is actually a sale or transfer of an old loan) it would not be grandfathered in because it would appear to originate in 2018 after the 2017 grandfather threshold. I don't think there are any good work-arounds;  TurboTax just needs to fix this by including a transfer option directly.

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