The home mortgage interest limitation in worksheet is not transferring to Schedule A. I have tried deleting 1099 Mortgage interest form and reentering, no success.

Since you understand the rules and limitations, I suggest you use the program to override the computer with the correct entry, rather than doing an actual override in Forms mode. Remember the IRS only gets Sch A with the final number listed. It doesn't get worksheets. The IRS gets the forms from the mortgage company. They are looking for you to claim based on what they receive. 

You can use Table 1 Worksheet to Figure Your Deductible Mortgage Interest.  You have two ways to enter your mortgage information.

• After you enter all Forms 1098, continue on in that section until you see "Your mortgage is being limited." On this page, you can enter your interest calculation. This replaces the program calculation and reports the entry you make here. TurboTax provides this option because of situations like yours.
• Another option, is to enter one form, say the balance is below the limitation, enter the correct amount.