I currently own a home, but purchased a second home (new build) on 12/22/2016. I don't understand the question, Was this loan paid off or refinanced by a different lender

[cemmienoir]

The second home is meant to replace my current home, but I qualified for both to avoid moving while the 2nd home was being built.  The new home is considered my primary, and the initial home will be going on the market within the next 30 days.  The loan on the new house was sold to another lender, so I'm not sure how to answer the question, "Was this loan paid off or financed by a different lender in 2016?"  Thanks for your assistance!

[PaulaM · Accepted solution]

The question is referring to points that may have been amortized previously. If you refinance a loan to replace a current loan, any unamortized points you have remaining would be accelerated and deducted in the year of the refinance. Most people don't amortize the points they pay on a first mortgage. You must amortize points on a refinanced loan.

Even though the loan on the second home was sold to another lender (a common practice with lenders), you would answer no to the question, assuming this is a new loan and not replacing the 1st home loan.