No, you do not need to report the oversea mortgage on Fbar of Form 9838.
You are correct that you do not need to report the mortgage interest.
Mortgage interest on a foreign mortgage would be entered on Schedule A for itemized deductions. Most people receive the highest deduction from taking the standard deduction to reduce their taxable income. If the standard deduction is better for your situation, then you do not need to report the foreign mortgage interest.
Please see this TurboTax Tip about standard deduction vs itemized deductions.
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