Form 8938 Mortgage loan deposited into checking account

Hi,

I am trying to fill out form 8938 on the website with Turbo tax but the instructions are not really clear. I am US citizen living in the US with foreign financial accounts/assets. I am not sure if I am required to file form 8938 as I am not sure if I should count the mortgage loan about 128,000USD from a foreign bank that is directly deposited into my checking account as the total value of my foreign financial assets? I subsequently put the loan money to fixed deposit so really I only earned the interest about 3000-4000USD.

If that does not count, then I will not exceed threshold. However, if it counts then I will exceed threshold. How do I ensure that US government knows that I actually owe the foreign bank 128,000 USD?

Thank you for your help in advance.

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