You should first enter the1098 for the house sold. While going through the questions on this 1098, there will be a box for 'Was this loan paid off or refinanced in 2023?' Check this box for the first 1098 but not for the new mortgage. Select 'Primary Home' for both 1098's. After entering both 1098's and checking done, you will get the opportunity to enter payoff details.
For the loan you paid off, the value in Box 2 is the balance on the start of the year (Dec 31, 2022 / Jan 1, 2023). For the new loan, it is the initial loan balance.
