Morgage Detail: Not sure what to enter

[friscomiller]

Simplified problem:

- I purchased a house in 2017 with a $300K mortgage. I took out a HELOC and used $150K for Home improvements.

- In 2020 I refinanced the house (Lender X) and combined the two loans into a single load for ~$450K

- Last year (2022) my loan was sold to Lender Y so I have two 1098s

Questions:

1. TurboTax asks me if each loan is a "refinance of a previous loan". I assume I answer YES on Lender X and NO on Lender Y. Correct?

2. For Lender X (the refi) TurboTax asks "Since you took this loan how much has been spent to buy, improve, or build the home it is secured by". I made no additional improvements. Is the number I enter $450K or Zero?

[PatriciaV]

1. Yes, Lender X was a refinance, Lender Y was not because the previous loan was sold, not refinanced.

2. The question about Lender X is used to determine if the loan was used only for your primary residence. If you didn't use the funds for anything else, enter the full amount of the mortgage balance. 

[friscomiller]

Perfect. Exactly what I needed to know. Thanks for the reply