I am not sure the mortgage company is giving you good advice. If you are making the payments, you may well qualify for the deduction.
Having the home titled in your name would involve probate administration. The Deed would be transfered from the estate to you. You do not need to pay off the mortgage first.
Generally, the mortgage company will allow you to continue making payments without requiring refinancing. If they refuse, then you may need to look at alternative forms of financing. One of the big problems I see is that your credit record *should* reflect the fact that you have been responsibly paying on this debt for the past 8 months. You will not be able to get this credit if the mortgage is listed in the name of the estate.
You may want to look into new programs that may be available to you.
Best of luck to you!