Bradley Corporation executes a 15-year $200,000 mortgage in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments and the annual interest rate is 12%. Over the life of the mortgage, the total amount that will be paid for interest is closest to?

Original or expected balance for your mortgage. Taxpayers can deduct the interest paid on first and second mortgages up to $1,000,000 in mortgage debt (the limit is $500,000 if married and filing separately). Any interest paid on first or second mortgages over this amount is not tax deductible. Home equity loans are limited to $100,000 or the amount of equity you have in your home. Our calculator limits your interest deduction to the interest payment that would be paid on a $1,000,000 mortgage.The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.