Thanks to both for the replies
The setting to zero work around works, at least partially
The mortgage balance on the 1st mortgage "goes away" and on the new (2nd) mortgage, it calculates the allowed ratio as (750k/880k) = 0.85 and then applies it to the total interest paid, reducing the deduction from $26k to $22k (rather than $13k as originally)
My (remaining) problem is that this is applying the 85% factor to ALL my interest payments from both mortgages -- I would think that ALL of the interest from my 1st mortgage should be deductible, and the 85% should apply only to the interest from the refi 2nd mortgage which is subject to the 85% factor.
Does this make sense? I can figure out the calculation and put it in with an OVERRIDE, just want to make sure it makes sense
Thanks again
