Pablo and Adriana, a married couple who file a joint return, purchased a $190,000 home making a $38,000 cash down payment and taking out a mortgage for the balance of the purchase price. They also paid the mortgage company $3,000 in points for originating the loan at closing. They paid $7,000 in interest on the mortgage this year. They also purchased a new car for $28,000 with a car loan from their credit union, paying $975 in interest for the year. What is their deduction for interest expense if they itemize their deductions?