Box 2 on the 1098 has the beginning balance, the next page asks for the ending balance.
Box 2 is the outstanding mortgage balance on Jan 1, the next page asks for the outstanding mortgage balance as of Dec 31.
The program is checking for an increase in the loan which would signal a Home Equity Line Of Credit. HELOC are treated differently starting this year. If the additional loan is used on the home, it is deductible. If it is used for a second home, or anything else, it isn't.
