Charles and Rebecca Thompson purchased a home in 2015 and to…

Charles and Rebecca Thompson purchased a home in 2015 and took out a mortgage of $1,200,000 for 6% interest. The current loan balance is $575,000, and they have an opportunity to refinance the loan for 4.5%. The Thompsons also have $17,000 of credit card debt at 14% interest. If the Thompsons refinance their mortgage and include the outstanding credit card debt, they will be able to deduct the full amount of the interest.