Your monthly pmts won't change, Sounds a bit like my HELOC, which calls for 240 equal principal payments (nondeductible) plus interest (deductible, hough the dollar "cap" affects us here in SF) on the unpaid balance at a floating rate based on prime. The difference: Your loan sounds fully amortized, which yields identical monthly pmts. Either way, your loan (and mine) is prepayable, and must be prepaid on certain events, such as a sale or refinancing, True enough, fully amortized pmts are interest-heavy in earlier years, but that's not reason enough to switch. I'd stick with what you have, and thereby deduct less interest each year as more and more of your pmts go to principal.
Did Intuit get it wrong? I think so. In their example of nondeductible interest, they include borrowing money for a DP on a second home , where loan interest is clearly deductible. Intuit says it's not.
