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NerakMai
New Member

Was this loan paid off or refinanced with a different lender?

Hello,

 

I just want to be sure that I'm getting this correctly.

I originally bought my home a couple years back under lender 1 who sold the mortgage to lender 2. In 2019 I refinanced with lender 1... who sold the mortgage to lender 3.  As a result I received four 1098 forms for the same home and same debt.

- 1098 from lender 1

- 1098 from lender 2

- 1098 from lender 1 for the refi

- 1098 from lender 3

 

TurboTax posed the question "Was this loan paid off or refinanced with a different lender in 2019?"

 

I'm not sure how to answer that anymore, if someone can please help.

2 Replies
AnnetteB6
Expert Alumni

Was this loan paid off or refinanced with a different lender?

Given the situation you described, the only loan that was paid off or refinanced with a different lender in 2019 was the one from lender 2.  

 

The other changes in lender were not due to the loans being paid off or refinanced, they were simply transferred to a different servicing company.

 

 

@NerakMai

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Carl
Level 15

Was this loan paid off or refinanced with a different lender?

Be VERY VERY CAREFUL when entering these 1098's. It is important that you enter them in cronological order starting with the oldest loan first. If entered incorrectly, it's highly probable that your interest deduction will be incorrectly limited.

- 1098 from lender 1

 "Was this loan paid off or refinanced with a different lender in 2019?"  NO

- 1098 from lender 2

"Was this loan paid off or refinanced with a different lender in 2019?" YES

- 1098 from lender 1 for the refi

"Was this loan paid off or refinanced with a different lender in 2019?" NO

Possible other question is "Was this loan a refi?" YES

So PAY ATTENTION TO THE *EXACT* WORDING of the question.

- 1098 from lender 3

"Was this loan paid off or refinanced with a different lender in 2019?" NO

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