use the monthly balance for the 12 months to strike a 12 point average . use the balances off the monthly servicer statements.
January would just use the old mortgage in the average
Feb- March would use both balances in the average
April - Dec would use the new mortgage only in the average
look at page 13 of IRS publication 936.... in the middle of the middle column it states:
Statements provided by your lender. If you receive monthly statements showing the closing
balance or the average balance for the month, you can use either to figure your average balance
for the year.
because you have those two overlapping months of Feb- March, your average for the year will be over $750,000
thoughts?
