Interest paid in this context is somewhat irrelevant (or you’re looking at it backwards, at least). At the end of thirty years, one will have paid the exact same amount of money (regardless of P&I breakdown) and have an asset that has the same price regardless of what you bought it at. It is the same house, after all.
So, in reality, with the higher interest rate, you’ll come out ahead based on the lower down payment and the increased tax deduction benefit based on the “higher” interest you paid along the way.
