Darrin owns a house with a FMV of $400,000, and acquisition indebtedness (first mortgage) of $250,000. He took out a home equity loan of $120,000 on the house, and used the proceeds to buy a yacht. If his interest on the home equity loan this year is $9,000, how much of the interest from the home equity loan will be deductible?

1) $9,000

2) $7,500

3) $5,625

4) $0

5) None of these