I refinaced my home loan for a lower rate, not to receive cash but when the loan was completed we were sent aprox $2000, as over payment? How do account for this

You would not be able to deduct the interest for the $2,000 unless you used the money to buy, build, or improve your home.  

For tax years 2018 through 2025, you can only deduct the interest from the amount of your loan that was used to buy, build, or improve the home that it is secured by.

If you used part of this loan to pay for things other than this home, you cannot deduct the interest from that amount of the loan.  TurboTax will help figure out what amount of interest you can deduct once you put in all of your information.  

Here's how to enter your mortgage interest statement in TurboTax:

1. With your return open, search for 1098 and select the Jump to link in the search results.
2. Follow the instructions to enter your 1098 info.