Pablo and Adriana, a married couple who file a joint return, purchase a $190,000 home by paying $38,000 cash down and taking a mortgage for the balance of the purchase price.The mortgage company charges them $3,000 in points for originating the loan that they pay at closing.They pay $7,000 in interest on the mortgage this year.They also purchase a new car this year for $28,000 by taking out a car loan from their credit union.They paid $975 in interest on the car loan this year. How much can Pablo and Adriana deduct for interest expense this year if they itemize their deductions?

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