James Mortgaged His House and Received a Certain Amount of Money

Multiple Choice

James mortgaged his house and received a certain amount of money in return as a loan. However, he repaid half the loan in six months. Which of the following is likely to be true in this scenario, at the present moment?

A) The mortgagee has an insurable interest towards 25 percent of the loan amount.
B) The mortgagee does not have an insurable interest in the loan amount.
C) The mortgagee has an insurable interest towards the entire loan amount.
D) The mortgagee has an insurable interest towards half the loan amount.