Jenny and Jim purchased a home $10$ years ago with a $30-$year mortgage. The market value of the home is now $$400,000$ and the outstanding balance on the mortgage is $$200,000.$ In $2007,$ they obtained a home equity loan for $$125,000$ to finance their new business. The entire interest on the home equity loan is deductible on their federal income tax return.

Question $3$ options:

True

False