Zakat And Mortgage
If Mr. XYZ considers the $100,000 as his wealth then he should pay 2.5% of asset zakat once every year. On the other hand, if he considers it as his savings in order to pay off his house then there’s no zakat on it. The principle is that there’s no zakat on items of personal use. How one sincerely categorizes their assets is up to each individual, unless the state provides any guidance about it.