It depends. I suppose you can make a case for making the interest calculation but errors could arise from that. Just make sure you record the calculation you made in a separate statement that documents the position that you took. Keep that calculation handy in your tax return folder just in case IRS contacts you regarding the calculation.
It probably would have been more correct to calculate the average loan balances between the two houses but that calculation can be subject to errors also. For an example, If your loan balance on you old home was $1M on January 1 and you sold your home on April 1. Your loan balance outstanding for that period of time was $ 333K($1M/3). Assuming your new balance is $750K, thus your loan balance for the year was $750K X 9/12=562K. Add the two combined balance is $562 + 333=$895K. So for the first 1098 you will enter $333 as the principle and the second $562. Then trust Turbo Tax to correctly calculate the interest limitation taking in consideration that the first loan had the $1M mortgage balance limitation and the new loan has the $750K limitation. To see that calculation, you would have to look at the home mortgage interest worksheet to see if it calculated correctly.
Hopefully, i gave you some food for thought as there is no consensus on how to report so that the amounts will come out correctly. Just document the calculation and position you took just in case if you may need to defend it in the future.
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