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January 30, 2021
Question

I refinanced my mortgage and the closing was on 12/29/2020. However, no funds were disbursed until January of 2021. What tax year would this apply to, 2020 or 2021?

  • January 30, 2021
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1 reply

WendyN2
February 3, 2021

2021; If the lender approves the loan, the loan origination date is the date when the loan is funded. In other words, the day the borrower receives the money in their account. After loan origination, the loan closing process or settlement takes place, the funds are deposited into the borrower’s account, and the process begins at that date.