Deductions & credits
It depends. In online versions you are limited to the step-by-step interview process. There you will only be able to enter your calculated interest deduction in the "Adjustments" box on the Mortgage Limitation screen (see below).
In desktop versions you have the step-by-step option but you also have the "Form View" option where one can override the total average balance in the "Ded Home Mort" worksheet.
It would appear based on your scenario that your interest would not be limited and you would enter the full interest paid amount.
