Choice "B" is correct. Interest paid on a debt secured by a home mortgage is classified as deductible qualified residence interest. The Browns would be able to deduct the interest paid as an itemized deduction. The limit is $100,000 of mortgage interest since the loan was not to buy, build, or improve the home.
Choice "c" is incorrect. Personal interest is not deductible. It is also called consumer interest.
Choice "d" is incorrect. Interest paid on debt secured by a home mortgage is deductible.
Choice "a" is incorrect. Interest paid on a debt secured by a home mortgage is not classified as investment interest.