I started the year with two mortgages, a primary and a HELOC. Then refinanced in June to consolidate them into one home loan. Then refinanced again in December for a significant reduction in the interest rate. Only one loan existed at the end of 2020, but the Deductible Home Mortgage Interest Worksheet is adding the balances together into one massive home loan that is 4x the amount of my actual average loan balance during the year, which ultimately limits the mortgage interest deduction. Please see my replies below for additional detail and screen shots.
