This is because mortgage interest deductions are limited because of the amount of your mortgage balance. Since you put in an amount over $1M, all of your mortgage interest cannot be claimed.
It sounds like you have combined both mortgage balances and this added up to the $1M total. Instead you may wish to calculate an average mortgage balance between the two 1098's and report that total instead. Also, since this is a refinance, you may wish to enter your mortgage balance of your home as of 01/01/2022.
Tell me if this helps.
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