You want to answer "Yes" to that question. By answering "No" you are telling TurboTax that you did not carry the loan for the entire year which is affecting the system's calculation of the average loan balance.
Mortgage interest is not fully deductible for loan amounts of over $1,000,000 in 2017 and over $750,000 for loan amounts after that. By answering "Yes," it correctly calculates only the portion that is deductible based on the age of the loan and the limit that was in place for that year. I imagine if you answer "No" you would not be able to file because it would determine that another 1098 is needed and cause an error.
