Patricia purchased a home on January 1, year 1 for $1,280,000 by making a down payment of $100,000 and financing the remaining $1,180,000 with a 30-year loan, secured by the residence, at 6 percent. During year 1, Patricia made interest-only payments on the loan of $70,800. What amount of the $70,800 interest expense Patricia paid during year 1 may she deduct as an itemized deduction?

$0.

$1,200.

$64,800.

$66,000.