Maximum Mortgage Interest Deduction

My 2023 home mortgage interest was $21,844 but when I go through all steps (answers provided below), it automatically provides a $11,741 adjustment for me saying that my mortgage interest deduction has been limited. 

 

I'm just hoping to confirm if this is correct or if I'm able to deduct for the full amount ($21k). 

 

Additional details:

- Married; filing separate

- Property tax was: $6,348.19

- Loan is secured by a property I own

- All points were deducted when purchasing the home in 2021

- Primary home (only property I/we own)

- Never refinanced and is not a HELOC

- Principal balance as of 1/1/2024: $686,744.96