Should I answer yes or no about refinancing if it was done prior to 2020?

[farrer0423]

We refinanced in 2017 so this is not the "original loan I used to buy or build my home." However, we have not refinanced this loan since we got it. How do I answer "Is this loan a home equity line of credit or a loan you've ever refinanced?"? the details specify the life of the loan... THIS loan?

[NCperson]

yes, you need to answer that THIS loan was a refinance.  TT needs to figure out whether all the interest is deductible.  for example, if you did a 'cash out' refi and used the cash out for other than improving your home, the related interest is NOT tax deductible. 

[KathrynG3]

TurboTax clarifies to answer this question yes since you have refinanced.

See: 

If you've ever refinanced this loan, even if it wasn't this year, select Yes here.

It’s common for people to refinance their loans to get better interest rates. Both home equity lines of credit (HELOC) and mortgage loans are reported on a 1098 and can be refinanced.

This includes refinanced mortgage loans that have had cash pulled out from them.

Before getting to this screen, you would have needed to enter the date, whether you paid points, whether you refinanced in 2020, and if the loan was secured by a property of yours.

When answering yes, then, TurboTax will clarify whether the loan is a mortgage loan that you've refinanced or a home equity line of credit  and whether you have ever pulled cash out from this loan when refinancing it to determine how much is deductible as @NCperson explained.

For more information, see: Can I deduct my mortgage?