Hi,
Thanks so much for your answers to both of you. I just wonder if my understanding might be correct in the following now. You are saying TT is calculating the mortgage average balance with (start+end)/2 by default. This might not be the best if I paid too much principal.
For instance, if the original loan was 1m and the ending is 700k, that average would be 850k even if most of the time it was lower than 750k. But, if originally I had 850k and I paid so much that I ended with 500k, then the average will be less than 750k anyway (675k), allowing me to deduct everything.
Is this correct? I'm asking because I'm actually in the second situation. I overpaid so much principal that (start+end)/2 < 750k. Would this mean I can maximize the deduction with the default calculation?
Also, in my case, I think it would be lower than 750k even if I calculate the average by using each month closing balance. I prepaid too much early in January. I haven't checked if this calculation is also lower than 750k but I can give that a try. It seems I would be forced to use this method due to prepaying over 1 month in principal.
Thanks again!
