In January 2021, Patricia takes out a $500,000 mortgage to purchase a main home with a fair market value of $800,000. In February 2021, she takes out a $250,000 home equity loan to put an addition on the main home. Both loans are secured by the main home and the total does not exceed the cost of the home. During 2021 Patricia paid interest of $7,000 on the loans and will therefore be able to deduct what amount of the interest paid on her income tax return?

A. $0

B. $3,500

C. $5,000

D. $7,000