I believe that if a person had two mortgages,
say one is a 15 year loan with a balance of 700,000 and at 10% interest
say one is a 30 year loan with a balance of 700,000 and at 2% interest
I think claiming only the interest on the 10% loan would be more advantageous to the taxpayer than averaging the two loans, and I think that would not violate any tax laws.
I should add that if you make this choice, you would need to continue reporting Home Mortgage Interest this same way (by not including the second loan) in future tax years.
@hbomb272
ACCORDING TO THE IRS:
"Choice to treat the debt as not secured by your home.
You can choose to treat any debt secured by your qualified home as not secured by the home. This treatment begins with the tax year for which you make the choice and continues for all later tax years. You can revoke your choice only with the consent of the IRS.
You may want to treat a debt as not secured by your home if the interest on that debt is fully deductible (for example, as a business expense) whether or not it qualifies as home mortgage interest. This may allow you, if the limits in Part II apply, more of a deduction for interest on other debts that are deductible only as home mortgage interest."
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