I paid off my old mortgage early February, and started the new mortgage in mid-february. I have statements with closing balance for each month. My thought was
- Jan+Feb ending balance for the old loan divided by 2.
- Feb through Dec ending balances of new loan divided by 11.
Add the 2 sums together and that's my average balance.
However I noticed the IRS publication 936 states to use a 0 for any month the loan was not active in and divide by 12- this just seems to make the average balance way too low.
