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Cheers for clearing that up for me

Cheers for the reply Sorry I worded that post badly - I was referring to a P and I loan in my above example. With one of those loans, You pay the same interest rate but on a decreasing principle, so less total interest every year, right? (100k, 90k, 80k... By the end your just paying 5%...

A quick newbie question re: IO vs P and I. Does the interest really stay the same? If you pay back a chunk of the loan, don't you then pay interest on the chunk of the principal that's remaining? Ie less interest? So if you borrowed 100k for 10 years after the first year wouldn't you pay...