I refinanced to lower my rate. How do I answer the question were all loan proceeds used to build, purchase or improve my home

Did you cash out any amount? Or did you refi "ONLY" what you owe on the original loan?

If you did not take any cash out during the refinance and this was your original loan then you would say Yes, all of your loan proceeds were used to buy, build or substantially improve your home. 

If you took any cash out at all, then you would say No, it was not all used to buy, build or substantially improve your home. 

Okay but it wants a dollar amount in the box. 

What box? When asked the question about taking a cash out, you should have answered that question as no. You may need to work back through it again.

We did take cash out to pay debts.

During the interview, the program will ask

1. Is this the original loan you took when you purchased the property, you will say no.
2. Next screen should say Great. What type of a loan is it? You will indicate this is loan you have refinanced.
3. Have you pulled cash from this when you refinanced. You will say yes.
4. Then next question will ask if you used tis money exclusively on this home. Here you will say no.
5. Next screen will assist you in determining the interest you can deduct this year based off of the amount you cased out during the refinance.