How to enter a Refinanced Mortgage in TurboTax?

Forum|Forum|5 years ago
April 14, 2020
1 reply
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So we had an existing mortgage with lender A. In April 2019 we refinanced with Lender B, and took cash out (to pay other debts). After one month, Lender B sold the Loan to Lender C.

When entering the 1098 for the refinanced loan with Lender B, do I check the box that this load was paid off in 2019? It also asks when the last payment was. Is that the date of the one payment we made to Lender B, or the date Lender C assumed the loan?

When I enter the 1098 for Lender C, do I call it another refinance and do I repeat the exact entries I used for Lender B regarding the portion of the loan amount used for the house itself?

Very confusing!

NCPERSON1

the loan from Lender B was not "paid off" ; the servicing was simply transferred.

for C, repeat the same entries. what should occur is that the interest is limited because the cash out was not used to improve your current residence.

if it is easier; I would suggest combining B and C and make believe the servicing wasn't sold; it will ensure you get to the correct answer (interest limited)