Question

Refinanced mortgage loan outstanding principle

Forum|Forum|5 years ago
February 21, 2021
1 reply
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I have a mortgage originated from Company A and refinanced to Company B.

In turbotax deductions, it asks me to fill "What was the outstanding loan balance on Jan.1st 2021? If you paid off in 2020 enter the balance on the day you paid it off."

What's the right answer to fill in for Company A? Is it zero or my outstanding principle on the day of refinance? Since I did not pay off the loan but Company B did.

C

Cynthiad66

Please try this;

If there is a refi and there was an outstanding mortgage principal listed in both of them on Line 2 on the 1098. When you do 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. 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". Once you change one of them to zero (the one that was paid off by the refinance) then it should no longer pop up with that error at the end when you go to file.

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