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  1. skater

    Ridiculous Newbie I/O vs P&I question

    The principal stays the same. You have two accounts. A loan of $100k and an offset of $75k. You are, however, correct that you only pay interest on the $25k. By having it set up in this way, you are preserving the loan balance (presuming it's your PPOR), should you wish to move elsewhere...
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