100% Prepaid Interest

[David F.]

Is anyone aware of any lenders who might consider allowing the borrower to prepay the entirety of the mortgage interest in the form of discount points?  Each point costs 1% of the borrow amount and reduces the interest rate 0.25%.  So assuming a 4% rate without points, this would be 16 points.  A one-time prepayment of 16% and the remainder of payments principal only over 30 years.  

I'm aware that agency loans are limited to 3 points, and I'm aware that any interest paid by way of discount points beyond that 3% has to be deducted from taxes over the life of the loan.  I would like to leverage another property I own outright for the down payment.  The results would look like this:

Property Value: $1,000,000/Prepaid interest $160,000 due at closing/ Mortgage Payment $2777/mo. ($1,000,000/360)

These are just arbitrary numbers, I would consider different terms but I just would like to know if something like this is possible.  Thanks in advance.