On Jul 24, 1:03*pm, wrote:
On Sun, 24 Jul 2011 10:03:03 -0400, John H
wrote:

Now, $400,000 divided by 360 payments gives $1111 as the amount towards principal, which would leave
$856 of interest paid each month. That would give me a deduction of $10,272. That's a pretty
significant deduction.

That is not how interest works.
You will be paying more like $1417 the first month and it will go down
slightly from there over the loan because you are paying the interest
on the unpaid balance.
Your first year's interest will be more like $17000.

I have a spread sheet I could run to give you the monthly
interest/principle amount for each payment that I put together for a
friend that I loaned the money to buy their first house.

That's OK. I think I was calculating average interest, not front
loaded.