Refinance on a Previous Loan Question

[KelzosKloset]

I refinanced my home and received 2 1098s. On the loan that was paid off , the question asked if this is "a refinance of a previous loan". This loan technically was a refinance when I took it out back in 2013 and was not the original loan. Would I respond yes? If so, I would have no idea how much the cash out was for that loan? 

I might be reading too much into this. Thank in advance.

[DMarkM1 · Accepted solution]

Yes, you would respond "Yes" it was a refinanced loan.  You should check your closing documents for the 2013 refinance to see if there was cash out.  It would be on the HUD 1 form.  Additionally, if there was cash out did you use all or any of the funds to buy, build, improve the home that secured the loan?   If everything was used for the home, it will be qualified for the deduction.  

Keep in mind the mortgage interest deduction is an itemized deduction.  If your itemized deductions do not exceed your standard deduction:  $12,550 for single filers, $25,100 for joint filers or $18,800 if head of household, then your mortgage form entries will not matter.