Enter the 1098 and answer the interview questions carefully.
You will answer "yes" this loan was refinanced, "yes" cash was taken and if all the cash was used on the home, report that as well.
The 1098 should have the Jan. 1st balance in Box 2.
You enter the balance for year-end from a year-end statement.
The only calculation you need to make is how much of the refinanced loan was used for something other than the house.
