No, you can't deduct the mortgage that you paid off. You can deduct the mortgage loan interest that's reported on you 1098- Mortgage Interest Forms, if you have enough itemized deductions.
Enter all the information from the first 1099-Mortgage Interest Form (original loan). Mark that it was sold when TurboTax asks. Next, enter the second 1099-Mortgage Interest Form. Don't enter that the second one was refinanced since the mortgage wasn't refinanced.
The outstanding mortgage principal will be in box 2 of the current servicer. There shouldn't be an outstanding mortgage principal for the original servicer since the loan was transferred.
Refer to the TurboTax article How do I handle multiple 1098 mortgage forms in TurboTax Online? for additional information.
Refer to the TurboTax Help article Where do I enter my 1098 mortgage interest statement? for navigation instructions.
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