Many prospective 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 associated with conventional mortgages.
An interest only home loan works by allowing you to pay only the interest charges that accrue on the principal amount borrowed for a specified period of time. During this period, you will not have to make any payments on the principal amount.
At the end of the interest only period, borrowers will begin monthly principal and interest payments until the full balance of the loan is paid in full. The length of time you can make your payments interest only depends on your lender and loan terms, but typically ranges from five to 10 years.
For those looking for an alternative way to finance their real estate investment, an interest only home loan can be beneficial. Central Pacific Bank currently offers Hawaii’s only interest only home loan option.
If you are interested in an interest only home loan, get started by clicking the button below, or contact one of our experienced loan officers by visiting cpb.bank/mortgage.
Learn more about CPB’s interest only home loan
More resources about Interest Only Loans...
Understanding an Interest Only Home Loan
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.