To see the amount of deductible interest from each of your loans in TurboTax Desktop, you can click on Forms in the upper right corner. The Home Mortgage Interest Worksheets should have all the info from each 1098. The Deductible Home Mortgage Interest Worksheet is what you want to look at. That will show the total outstanding mortgages and interest. Your deductible interest appears on line 20 and the nondeductible interest is on line 26. You can't do anything with the line 26 amount, you lose out on deducting it due to the loan balances.
Yes, you can leave off the second loan if it yields a slightly better result. Technically, the IRS is supposed to approve you including this loan in future years after opting not to include it. You would have to get their consent in writing. In practice, I doubt they would ever notice if you left this loan off in 2021. If you want to be safe though, go ahead and include it or you might want to begin the process now to have them consent in writing to include it on your 2022 return because I have no idea how long that would take.
