Interest Only Program
Interest Only Program
Get your dream home with low monthly payments
Get your dream home with low monthly payments.
If you're looking for a mortgage that offers greater flexibility and more options, an Interest Only Home Loan is the perfect solution. With an Interest Only Home Loan, you only pay the interest portion of the mortgage each month in the first five to 10 years, allowing you to allocate more funds to other important expenses or investments.
Experience the great benefits of Hawaii’s first and only Interest Only Home Loan, including:
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Lower monthly payments compared to traditional Principal & Interest loans.
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Pay only the interest in the first 5 or 10 years.
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Fixed rate and ARM loan options are available.
Ready to take advantage of an Interest Only Home Loan from CPB? Speak to one of our experienced loan officers and make home ownership a reality.
How does our Interest Only feature work?
Comparison of four $600,000 loan amounts ($800,000 home with $200,000 down payment) |
Traditional Fixed-Rate Mortgage |
Traditional 10-Year ARM |
10-Year Interest Only Fixed-Rate Mortgage |
10-Year Interest Only 10-Year ARM |
---|---|---|---|---|
Term |
30-Year |
30-Year |
30-Year |
30-Year |
Initial Interest Rates |
6.000% |
5.250%1 |
6.000% |
5.250%1 |
Annual Percentage Rate |
6.208% |
5.425% |
6.270% |
5.467% |
Points |
1.250% |
1.000% |
1.875% |
1.500% |
Initial Monthly Payment (Years 1-10) |
$3,597 |
$3,313 |
$3,000 |
$2,625 |
Monthly payment with no rate change (Years 11-30) |
$3,597 |
$3,313 |
$4,299 |
$4,043 |
Monthly payment with 2% rate change (Years 11-30) |
$3,597 |
$3,886 |
$4,299 |
$4,742 |
Balance owed after 10 years |
$502,114 |
$491,690 |
$600,000 |
$600,000 |
Home equity in year 10 with $200,000 down payment* |
$297,886 |
$308,310 |
$200,000 |
$200,000 |
Comparison of four $600,000 loan amounts ($800,000 home with $200,000 down payment) |
Traditional Fixed-Rate Mortgage |
Traditional 10-Year ARM |
10-Year Interest Only Fixed-Rate Mortgage |
10-Year Interest Only 10-Year ARM |
Term |
30-Year |
30-Year |
30-Year |
30-Year |
Initial Interest Rates |
6.000% |
5.250%1 |
6.000% |
5.250%1 |
Annual Percentage Rate |
6.208% |
5.425% |
6.270% |
5.467% |
Points |
1.250% |
1.000% |
1.875% |
1.500% |
Initial Monthly Payment (Years 1-10) |
$3,597 |
$3,313 |
$3,000 |
$2,625 |
Monthly payment with no rate change (Years 11-30) |
$3,597 |
$3,313 |
$4,299 |
$4,043 |
Monthly payment with 2% rate change (Years 11-30) |
$3,597 |
$3,886 |
$4,299 |
$4,742 |
Balance owed after 10 years |
$502,114 |
$491,690 |
$600,000 |
$600,000 |
Home equity in year 10 with $200,000 down payment* |
$297,886 |
$308,310 |
$200,000 |
$200,000 |
Monthly payment examples do not include property taxes or insurance which will increase monthly payments. All rates and points shown are for owner-occupant loans based on a loan term of 30 years, unless otherwise stated, and are subject to change or cancellation without notice and subject to loan qualifications based on the program’s underwriting guidelines. Other processing fees such as appraisal fees, credit reports, escrow, etc., are applicable. Offer of credit subject to application and credit approval. Certain restrictions may apply.
1 Interest rates can increase after the initial interest rate period.
*Assume home prices and housing values stay constant

Reasons why?
• Keep your monthly housing costs low
• More affordable housing payments initially
• Increase monthly cash flow
• No Pre-Payment Penalty
• No Negative Amortization
• No Balloon payment
• CPB portfolio loan serviced by CPB
Resources about Interest Only Loans

Understanding an Interest Only Home Loan
With interest rates continuing to rise, many borrowers are turning to interest only home loans as a way to reduce their monthly mortgage payments. But what exactly is an interest only home loan and when should you consider applying for one?
How an Interest Only Home Loan works
Many homebuyers are increasingly turning to interest only home loans. An interest only home loan is an attractive option among those who want to invest in real estate but can't afford to make the large monthly payments.
An alternative to a traditional mortgage
Mortgages are often seen as a one-size-fits-all solution when it comes to buying a home, but they don't have to be. There are a variety of mortgage options available to you, and an interest only mortgage is one of them.
What to consider when applying for an Interest Only Home Loan
If you're looking to finance a home purchase, an interest only home loan could be the perfect solution. However, there are a few essential things to consider when applying for an interest only loan before applying.