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Yes you're right, the interest is charged on the decreased amount. It isn't linear though. For example in the first year, each repayment comprises about 99% interest and 1% principle. In the 30th year that ratio swaps back the other way, and its a gradual curve in between. So its NOT 90k...

If it's IO loan, then you still owe the same 100k whether its year 1, year 2 or year 30 for that matter. So repayments are still the same. Eg 5% interest rate x 100k total / 12 months = $416 per month. In 30 years time, obviously $416 will be peanuts.