Mortgage loan transferred within 10 days, got 2 separate Form 1098. How are points deductions calculated

Can someone walk me through how to input the two Form 1098s I got? I took out a mortgage loan in 2023 , paid $10700 in points, and in 10 days the loan got transferred to another lender. I got 2 Form 1098s as a result. All my points paid are shown in the 1st 1098 and none in the second 1098.

 

1) When entering the 1st original Form 1098 from original lender, do I check the box "This loan was paid off or refinanced with a different lender in 2023" even though I technically didnt pay it off or refinanced? I just worry that if I check off this box that my points will no longer be taken out of the future tax refunds. 

 

 2) On the 1st Form1098 from original lender, If I check off that box "This loan was paid off or refinanced with a different lender in 2023", my deductible point is $10700. But if I dont check it off, it becomes $167. But either way it doesnt affect my refund amount. Which do I do?