{"id":277,"date":"2017-11-27T23:26:21","date_gmt":"2017-11-27T23:26:21","guid":{"rendered":"http:\/\/newgenholdings.nexty.com.au:81\/?post_type=ufaq&#038;p=277"},"modified":"2017-11-27T23:26:21","modified_gmt":"2017-11-27T23:26:21","slug":"what-is-the-difference-between-interest-only-io-and-principal-interest-pi-repayment","status":"publish","type":"ufaq","link":"https:\/\/newgenholdings.com.au\/en\/ufaqs\/what-is-the-difference-between-interest-only-io-and-principal-interest-pi-repayment\/","title":{"rendered":"What is the difference between Interest Only (IO) and Principal &#038; Interest (PI) repayment?"},"content":{"rendered":"<div  class=\"ewd-ufaq-faq-list ewd-ufaq-page-type-distinct\" id='ewd-ufaq-faq-list'>\n\n\t<input type='hidden' name='show_on_load' value='' id='ewd-ufaq-show-on-load' \/>\n<input type='hidden' name='include_category' value='' id='ewd-ufaq-include-category' \/>\n<input type='hidden' name='exclude_category' value='' id='ewd-ufaq-exclude-category' \/>\n<input type='hidden' name='orderby' value='date' id='ewd-ufaq-orderby' \/>\n<input type='hidden' name='order' value='desc' id='ewd-ufaq-order' \/>\n<input type='hidden' name='post_count' value='-1' id='ewd-ufaq-post-count' \/>\n<input type='hidden' name='current_url' value='\/en\/wp-json\/wp\/v2\/ufaq\/277' id='ewd-ufaq-current-url' \/>\n\t\n\t\n\t<div class='ewd-ufaq-faqs'>\n\n\t\t<div  class=\"ewd-ufaq-faq-div ewd-ufaq-faq-column-count-one ewd-ufaq-faq-responsive-columns- ewd-ufaq-faq-display-style-default ewd-ufaq-can-be-toggled\" id='ewd-ufaq-post-277-N583r6B1tC' data-post_id='277'>\n\n\t<div class='ewd-ufaq-faq-title ewd-ufaq-faq-toggle'>\n\t\n\t<a class='ewd-ufaq-post-margin'  href='#'>\n\n\t\t<div class='ewd-ufaq-post-margin-symbol ewd-ufaq-square'>\n\t\t\t<span >B<\/span>\n\t\t<\/div>\n\n\t\t<div class='ewd-ufaq-faq-title-text'>\n\n\t\t\t<h4>\n\t\t\t\tWhat is the difference between Interest Only (IO) and Principal &#038; Interest (PI) repayment?\t\t\t<\/h4>\n\n\t\t<\/div>\n\n\t\t<div class='ewd-ufaq-clear'><\/div>\n\n\t<\/a>\n\t\n<\/div>\n\t\n\t<div class='ewd-ufaq-faq-body ' >\n\n\t\t\n\t\t\t\n\t\t\n\t\t\t<div class='ewd-ufaq-post-margin ewd-ufaq-faq-post'>\n\t<p>Based on a $500,000 home loan over 30 years. Assumes constant interest rate of 6%. Monthly repayment figures determined using the MoneySmart mortgage calculator. Interest is calculated by compounding on the same day as the monthly repayment.<\/p>\n<table border=\"1\" width=\"100%\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tbody>\n<tr>\n<td valign=\"top\" width=\"19%\"><b>Product type<\/b><\/td>\n<td valign=\"top\" width=\"19%\"><b>Principal repaid<\/b><\/td>\n<td valign=\"top\" width=\"19%\"><b>Interest paid over full term of loan<\/b><\/td>\n<td valign=\"top\" width=\"19%\"><b>Extra interest paid over full term of loan<\/b><\/td>\n<td valign=\"top\" width=\"19%\"><b>P&#038;I payments over remaining term of loan following IO expiry<\/b><\/td>\n<\/tr>\n<tr>\n<td>P&#038;I loan<\/td>\n<td>$500,000<\/td>\n<td>$579,191<\/td>\n<td>\u2013<\/td>\n<td>$2,998<\/td>\n<\/tr>\n<tr>\n<td>5 year IO<\/td>\n<td>$500,000<\/td>\n<td>$616,452<\/td>\n<td>$37,261<\/td>\n<td>$3,222<\/td>\n<\/tr>\n<tr>\n<td>10 year IO<\/td>\n<td>$500,000<\/td>\n<td>$659,717<\/td>\n<td>$80,526<\/td>\n<td>$3,582<\/td>\n<\/tr>\n<tr>\n<td>15 year IO<\/td>\n<td>$500,000<\/td>\n<td>$709,471<\/td>\n<td>$130,280<\/td>\n<td>$4,219<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\t\t\n\t\t\t<div class='ewd-ufaq-faq-custom-fields'>\n\n\t\n<\/div>\n\t\t\n\t\t\t\n\t\t\n\t\t\t\n\t\t\n\t\t\t\n\t\t\n\t\t\t\n\t\t\n\t\t\t\n\t\t\n\t\t\t\n\t\t\n\t\t\t\n\t\t\n\t<\/div>\n\n<\/div>\n\t<\/div>\n\n\t\n<\/div>","protected":false},"excerpt":{"rendered":"<p>B What is the difference between Interest Only (IO) and Principal &#038; Interest (PI) repayment? Based on a $500,000 home loan over 30 years. Assumes constant interest rate of 6%. Monthly repayment figures determined using the MoneySmart mortgage calculator. Interest is calculated by compounding on the same day as the monthly repayment. Product type Principal repaid Interest paid over full term of loan Extra interest paid over full term of loan P&#038;I payments over remaining [&hellip;]<\/p>\n","protected":false},"author":1,"comment_status":"open","ping_status":"closed","template":"","ufaq-category":[],"ufaq-tag":[],"_links":{"self":[{"href":"https:\/\/newgenholdings.com.au\/en\/wp-json\/wp\/v2\/ufaq\/277"}],"collection":[{"href":"https:\/\/newgenholdings.com.au\/en\/wp-json\/wp\/v2\/ufaq"}],"about":[{"href":"https:\/\/newgenholdings.com.au\/en\/wp-json\/wp\/v2\/types\/ufaq"}],"author":[{"embeddable":true,"href":"https:\/\/newgenholdings.com.au\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newgenholdings.com.au\/en\/wp-json\/wp\/v2\/comments?post=277"}],"wp:attachment":[{"href":"https:\/\/newgenholdings.com.au\/en\/wp-json\/wp\/v2\/media?parent=277"}],"wp:term":[{"taxonomy":"ufaq-category","embeddable":true,"href":"https:\/\/newgenholdings.com.au\/en\/wp-json\/wp\/v2\/ufaq-category?post=277"},{"taxonomy":"ufaq-tag","embeddable":true,"href":"https:\/\/newgenholdings.com.au\/en\/wp-json\/wp\/v2\/ufaq-tag?post=277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}