I am entering 3 mortgage interest amounts to deduct. The first (lender A) is for $14,346. The second (lender B) is for $8986 and represents a refinance in 2020. The third (lender C) is for $1610 and represents a 2nd refinance later in 2020.
Prior to entering lender C, my total Federal and State refund was calculating as $17,619. All of the sudden, when I enter the $1600 mortgage interest amount for lender C, as soon as I check the box saying "this loan is secured by a property of mine" my tax refund goes down to a total of $13,780 and the next screen says "You're getting a deduction of $9,220 for the mortgage interest you paid." Why would entering the last amount for lender C for $1600 and saying my loan is security by my property cause my deduction to go down, and why would it go down so much?
