We refinance and we received 3 different 1098 forms. We had a HERO loan for the house and we had that paid off with the refinance. Is that considered as a cash out?
03347
3 Replies
RobertB4444
Expert Alumni
Jan 26, 2022 10:31:45 AM
If your new mortgage was larger than your old mortgage so that you could take cash out of the new loan to pay off debt then yes, that's a cash out.
river041
Returning Member
Jan 26, 2022 10:35:36 AM
It was a “lien” on the house, it’s stated as a 2nd mortgage loan. Still a chashout?
DaveF1006
Expert Alumni
Jan 26, 2022 10:49:54 AM
Yes, it is still considered a cash out and the interest is not deductible since the loan was not used to improve your home.