Yeah, you pay interest only for like the first two years or something, then the principal starts to kick in and gets added to your payment. That's what makes these types of loans attractive to people that could otherwise not afford the house in the first place. You can get a house for a low monthly payment at first. People figure that by the time the principal starts to become due they will be on their feet, better job, have some money saved up, etc. It never really works that way though. If you weren't financially responsible to buy the house in the first place, it's unlikely that anything is going to change in a couple years. Thing is, people just simply walk away from the house when they realize that they can't pay and the bank takes it. They have no equity in the house since they were only paying interest, so they really aren't losing anything except ruined credit. But, somebody that would do that willingly probably isn't worried about their credit or their finances anyway.
