Mortgage Interest again

[skhyatt]

Another Mortgage Interest question. I know this subject has been talked about many times. Let's say TP has a mortgage for $150K. Refinances that mortgage and rolls the closing costs into the new loan. Let's say the new mortgage now has a new balance of $155K. Is the additional 5K considered equity debt?

[veritas]

You are correct

The original debt is 150K. Anything above that is equity debt subject to the 100k limit.

[skhyatt]

Thanks Veritas