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I am a rookie so bear with me. What if I refi w/ cash-out and put the money in my savings account

If you refinance your mortgage and get more cash than your existing balance, there are a number of possibilities.

If the excess cash is less than $100,000 you can consider the cash as equity debt and the interest expense is deductible. If more than $100,000, then only the interest on the first $100,000 is deductible.

If there were points assessed on the refinance, they must be amortized over the life of the loan. You cannot deduct the full amount in the year you refinanced.

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