This year, Major Healy paid $37,500 of interest on a mortgage on his home (he borrowed $750,000 to buy the residence in 2015; $850,000 original purchase price and value at purchase) $5,750 of interest on a $115,000 home equity loan on his home (loan proceeds were used to buy antique cars), and $10,000 of interest on a mortgage on his vacation home (borrowed $200,000 to purchase the home in 2010. home purchased for $500.000). Major Healy's AGI IS $220,000. How much interest expense can Major Healy deduct as an itemized deduction? Interest Deductible