Balance of mortgages taken prior to Dec.2017 = $865K. Refinanced mortgage balances on Dec.2019. The new total is $800K. Since the balances prior to 2017 were "grandfathered" (covered under the $1.0mm threshold), is the new balance of $800K also grandfathered as a refinance...or is it considered a brand new loan, therefore, it falls under the threshold of $750K for mortgage loans taken after Dec.2017?
Help? Thank you.
You'll need to sign in or create an account to connect with an expert.
If you refinance a mortgage that was originally taken out after 10/13/1987, the refinanced mortgage will be considered "home acquisition debt" up to the amount of mortgage principal just before you refinanced. Any additional debt not used to buy, build or substantially improve a qualified home isn't home acquisition debt.
Per IRS Publication 936, home acquisition debt originated after 12/15/2017 is debt that is secured by your main home or second home and is limited to $750,000.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
millbemis
New Member
9137421619
New Member
djhi849711
New Member
Whiteclay
Level 1
kdubberley
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.