clarification on what to do if I have multiple 1098s from refinancing my home debt

[jerrys151]

In the article "What to do if I have multiple 1098s from refinancing my home debt, the directions say to enter all refinance related 1098s as one. In my case I have two 1098s related to the refinance, one from the mortgage company that originated the loan and one from the company to which they sold the loan. The 1098s are from different lenders and one has an entry in box 11 while the other does not. How do I combine these? I assume that I add up the interest paid. What about the lender's name and the contents of box 11?

[JohnB5677]

If you've refinanced or had your mortgage lender changed, the outstanding mortgage principal listed in the combined total of them on Line 2 of the 1098 will be too large.

When you put an outstanding balance in both forms, then the program adds them together and if that number is greater than $750k, then it puts you in the category to "limit interest".

To get that to go away, you need to go back to the deductions section and click on "edit" mortgage interest statement. Enter both 1098's.

Change the line 2 of the mortgage that you no longer owe on (like the one that you refinanced and paid off) to a 0 (zero) because you have refinanced out of that loan and no longer have an "outstanding mortgage principal".