Mortgage interest deduction seems to be incorrect

Hi,

 

Below is our homeowner situation,

* Home A purchased in 2018

* Purchased Home B in Jun 2021 and paid same points

* Loan for Home B got transferred in Aug 2021

* We could not move into Home B immediately as we did some remodel and continued living in Home A until Jan 2022

 

So I am planning to treat Home A as our primary home and Home B as secondary home for tax purposes. Here's where things are strange,

 

* When I add my first 1098 for Home A, all of the interest shows up as deductible (which is correct because outstanding balance on this loan is lower than 750k limit)

* As mentioned above I have two 1098 for Home B, one of them shows points (original lender) and other one shows rest of interest for the year. Initially I just added the most recent 1098 (one which doesn't have points), strangely the deductible interest decreases. Even after I add the other 1098 with points, it doesn't seem to make a difference at all.

 

Can anyone help me understand what is going on here? I am still confused as to why the deductible interest would actually decrease if I add 1098 for my second home.

 

I assumed we could deduct Home A interest fully, and portion of Home B's interest until we hit the 750k limit. Does turbotax merge all outstanding loans and interests together and simply applies limit on overall interest?