Deductions & credits

You are correct all the interest paid for the year will be deductible since the loans did not overlap and neither loan exceeded $750K. 

As for the points.  Generally yes, you can choose to deduct the points in the year paid for a new loan.  Below is an extract from Publication 936.  

On the page titled "Tell us about the points paid" be sure to select that "this is a new home that you paid points in 2022" and you "bought or improved your main home in 2022."  This will add all the points to your total interest paid.  

On the screen which TurboTax lets you know your interest was limited there should be an adjustment box.  Enter the total amount of interest you paid from the boxes 1 of your forms 1098 plus the deductible points in the adjustment box.  

Be sure the adjustment box includes all the points paid and the interest paid in 2022. 

You can fully deduct points in the year paid if you meet all the following tests. 

• Your loan is secured by your main home. (Your main home is the one you ordinarily live in most of the time.)
• Paying points is an established business practice in the area where the loan was made.
• The points paid weren't more than the points generally charged in that area.
• You use the cash method of accounting. This means you report income in the year you receive it and deduct expenses in the year you pay them. Most individuals use this method.
• The points weren't paid in place of amounts that are ordinarily stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes.
• The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. The funds you provided aren't required to have been applied to the points. They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. You can't have borrowed these funds from your lender or mortgage broker.
• You use your loan to buy or build your main home.
• The points were figured as a percentage of the principal amount of the mortgage.
• The amount is clearly shown on the settlement statement (such as the Settlement Statement, Form HUD-1) as points charged for the mortgage. The points may be shown as paid from either your funds or the seller's.

Note. If you meet all of these tests, you can choose to either fully deduct the points in the year paid, or deduct them over the life of the loan.