19 On August 1, Paul took advantage of low interest rates and refinanced his $T5,000 home mortgage with her original lender. The new home loan is for 15 years. He paid $215 in closing costs and $1,600 in discount points (prepaid interest} to obtain the loan. The house is worth $155,000, and Paul's basis in the house is $90,000. As part of the refinancing arrangement, he also obtained a $10,000 home-equity loan. He used the proceeds from the home-equity loan to reduce the balance due on her credit cards. Paul received several Form 1098 statements from her bank for interest paid by him in the current year. Details appear below. (See also 119) Primary home mortgage $1100 Home-equity loan 435 Credit cards 498 Car loan 390