I have the same exact problem. TurboTax adds up the outstanding principal from the original mortgage and the refinanced mortgage when it should be averaging. The only work around seems to be entering $0 in box 2 on the 1098 of the refinanced mortgage, even though the 1098 form issued by the lender has the amount on origination date filled in. This could cause TurboTax users to lose thousands of dollars in tax refund. Please address this ASAP.
