Tax deductions after refinaning a rental property

[Rick Im]

I have two questions regarding mortgage interest tax deductions.

First, last year, I purchased a HUD property at a significant discount and used a $70,000 HELOC from my primary residence for the down payment. I understand that the interest on this HELOC should be tax-deductible, and I have documentation to support the transaction. Can you confirm if this is correct?

Second, I bought the property for $279,000, and its initial appraisal was $337,000. After completing renovations, the estimated appraised value has increased to $370,000. Now that the six-month seasoning period has ended, I'm considering refinancing the property. If I refinance for $279,000 and use $70,000 of the proceeds to pay off the HELOC, will the interest on the full $279,000 refinanced loan remain fully tax-deductible?

Rick