"Were all loan proceeds used to purchase, build, or improve the home secured by this loan?(see help if this loan is a refinance loan)" - I am unsure of how to answer this

If you took cash out for any other purpose other than to build or improve your home, the interest on that portion of the loan is not tax deductible. 

Example, you refinanced your home for $200,000.  You took $50,000 out to buy a truck and $50,000 out to pay off credit card and other debt.  Your previous loan balance from buying the house was $75,000 and you are using $25,000 to remodel your kitchen.  The $75,000 is considered the amount used to purchase your home, the $25,000 is to improve your home so the interest on the $100,000 used to purchase and improve your home is tax deductible.  The interest on the $100,000 used to pay off debt and buy a truck is not deductible.  

TurboTax will do the calculations for prorating the interest, but you will need to enter the amount that was used to buy, build or improve your home.