Whether it was stupid or not is a matter of perspective. If you didn’t pay enough interest to itemize your deductions, then the only question is did you get a better interest-rate. Even with itemized deductions, that amounts to a 20% or so subsidy of the interest-rate. So a 5% mortgage would have an effective rate of 4% after the deduction. If you got a better rate on the personal loan, then you’re still ahead. Having a personal loan instead of a mortgage also means that you don’t have to escrow your property taxes, which might be of some advantage to you.
