Finance
In Hawaii, an 'interest-only' mortgage requires the borrower to:
AA. Pay principal and interest in equal monthly amounts
BB. Pay only the interest for a specified period, with the full principal due at the end or when amortization begins✓ Correct
CC. Pay only the interest for the entire 30-year term
DD. Pay 50% of each monthly payment toward interest
Explanation
An interest-only loan requires payments covering only the interest for a set period (often 5-10 years). After that period, payments must cover both principal and interest, which significantly increases the payment amount.
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