If you’re looking for a home in paradise, one of the first things you’re going to consider are the Hawaii mortgage rates. Hawaii’s mortgage environment is somewhat unique; Hawaii has virtually no national banks, and instead has four major local banks (in addition to a variety of credit unions): First Hawaiian Bank, American Savings Bank, Territorial Savings Bank, and Bank of Hawaii. Each of these banks offer highly competitive rates for those seeking to purchase homes in Hawaii.
What Are the Current Mortgage Rates in Hawaii?
As of early 2016, the current mortgage rates in Hawaii for a 30 year fixed rate loan range between approximately 3.125% and 3.61%, depending on the lenders that you use and the amount of points you buy. There are both local banks and local federal credit unions widely available in addition to the national bank loans that you can acquire online.
•   First Hawaiian Bank, as of March 2016, has a conventional 30 year fixed rate of 3.25% (APR of 3.43%), with a purchase of two points. Without a purchase of two points, the APR of the loan goes up to 3.61%. Their 15 year fixed rate mortgage loans start at 2.5% with a purchase of 2 points. This is the highest amount of points which can be purchased, and is consequently a lower interest rate than some other banks.
•   American Savings Bank, as of March 31, 2016, has a conventional 30 year fixed rate of 3.375% (APR of 3.506%) with the purchase of 1.625 points. Their 15 year fixed rate mortgage loans start at 2.626% with the purchase of 1.375 points available.
•   Territorial Savings Bank, as of March 2016, has a conventional 30 year fixed rate of 3.385% (APR of 3.529%) with the purchase of 1.5 points. Their 15 year fixed rate mortgage loans start at 2.500% with the purchase of 2 points. This highlights the importance of comparing similar loan packages, as the 30 year loan would be preferable to American Savings Bank’s, but their 15 year loan would not.
•   Bank of Hawaii, as of March 2016, has a conventional 30 year fixed rate of 3.125% (APR 3.165%) with the purchase of 1.750 points.Their 15 year fixed rate mortgage has an APR of 2.840% with the purchase of 1.5 points. These are the lowest rates available at a major local bank even taking into consideration the purchase points.
•   Hawaii State FCU, as of March 2016, has a conventional 30 year fixed rate of 3.25% (APR 3.433%) with the purchase of 1.875 points. Many federal credit unions offer similar rates, though their lending criteria may be looser than more conventional banks.
The above rates assume qualified borrowers and conventional loan packages. Specialized loan packages such as FHA loans or low down payment loans may have substantially higher rates or may carry with them additional costs such as Private Mortgage Insurance. Mortgage borrowers also need to pay attention to the cost of purchase points; for instance, the Hawaii State FCU loan may have a lower interest rate than American Savings Bank, but it requires a larger point purchase.
Many of the disparities between the fixed rate loan rates can be attributed to different lending standards. Some of the lower interest rates are from banks that have higher lending standards, and consequently are taking on more risk. Additionally, different lenders also offer different loan products, which can also affect the interest rates that they are able to support for their conventional loans.
What Are the Predictions for Hawaii Mortgage Loans in 2016?
Mortgage rates have been fluctuating in Hawaii ever since the market crash, but they have remained approximately between 3% and 4% during this time. Since 2007, mortgage rates have fallen from around 6.5% to a low of near 3%. Mortgage rates have only ever been lower than they are now directly following the crash, and even then, only by a fraction of a percentage. For interested buyers, improvement of their personal credit rating and buying down points will affect their mortgage interest rate more than waiting for lower rates.
If you’re looking for a home in paradise, one of the first things you’re going to consider are the Hawaii mortgage rates. Hawaii’s mortgage environment is somewhat unique; Hawaii has virtually no national banks, and instead has four major local banks (in addition to a variety of credit unions): First Hawaiian Bank, American Savings Bank, Territorial Savings Bank, and Bank of Hawaii. Each of these banks offer highly competitive rates for those seeking to purchase homes in Hawaii.
What Are the Current Mortgage Rates in Hawaii?
As of early 2016, the current mortgage rates in Hawaii for a 30 year fixed rate loan range between approximately 3.125% and 3.61%, depending on the lenders that you use and the amount of points you buy. There are both local banks and local federal credit unions widely available in addition to the national bank loans that you can acquire online.
•   First Hawaiian Bank, as of March 2016, has a conventional 30 year fixed rate of 3.25% (APR of 3.43%), with a purchase of two points. Without a purchase of two points, the APR of the loan goes up to 3.61%. Their 15 year fixed rate mortgage loans start at 2.5% with a purchase of 2 points. This is the highest amount of points which can be purchased, and is consequently a lower interest rate than some other banks.
•   American Savings Bank, as of March 31, 2016, has a conventional 30 year fixed rate of 3.375% (APR of 3.506%) with the purchase of 1.625 points. Their 15 year fixed rate mortgage loans start at 2.626% with the purchase of 1.375 points available.
•   Territorial Savings Bank, as of March 2016, has a conventional 30 year fixed rate of 3.385% (APR of 3.529%) with the purchase of 1.5 points. Their 15 year fixed rate mortgage loans start at 2.500% with the purchase of 2 points. This highlights the importance of comparing similar loan packages, as the 30 year loan would be preferable to American Savings Bank’s, but their 15 year loan would not.
•   Bank of Hawaii, as of March 2016, has a conventional 30 year fixed rate of 3.125% (APR 3.165%) with the purchase of 1.750 points.Their 15 year fixed rate mortgage has an APR of 2.840% with the purchase of 1.5 points. These are the lowest rates available at a major local bank even taking into consideration the purchase points.
•   Hawaii State FCU, as of March 2016, has a conventional 30 year fixed rate of 3.25% (APR 3.433%) with the purchase of 1.875 points. Many federal credit unions offer similar rates, though their lending criteria may be looser than more conventional banks.
The above rates assume qualified borrowers and conventional loan packages. Specialized loan packages such as FHA loans or low down payment loans may have substantially higher rates or may carry with them additional costs such as Private Mortgage Insurance. Mortgage borrowers also need to pay attention to the cost of purchase points; for instance, the Hawaii State FCU loan may have a lower interest rate than American Savings Bank, but it requires a larger point purchase.
Many of the disparities between the fixed rate loan rates can be attributed to different lending standards. Some of the lower interest rates are from banks that have higher lending standards, and consequently are taking on more risk. Additionally, different lenders also offer different loan products, which can also affect the interest rates that they are able to support for their conventional loans.
What Are the Predictions for Hawaii Mortgage Loans in 2016?
Mortgage rates have been fluctuating in Hawaii ever since the market crash, but they have remained approximately between 3% and 4% during this time. Since 2007, mortgage rates have fallen from around 6.5% to a low of near 3%. Mortgage rates have only ever been lower than they are now directly following the crash, and even then, only by a fraction of a percentage. For interested buyers, improvement of their personal credit rating and buying down points will affect their mortgage interest rate more than waiting for lower rates.
These mortgage rates are historic lows. It is unlikely that they will go any lower, though they may rise in the coming years as the property market continues to rebound. In fact, the mortgage rates have been going up slightly over 2015, and are likely to continue slowly rising throughout 2016 and beyond as the local real estate market continues its recovery. However, mortgage rates are extremely complex and they are relative not only to the real estate market and the economy as a whole. It is unlikely that mortgage rates will ever hit the prior highs of 6%, though they may approach or even breach 4% within the next year or two as interest in these properties continues to rise.
Hawaii mortgage rates have been at rock bottom for quite some time, and there’s really nowhere to go but up. Right now is one of the most ideal times to buy because the economy is still recovering and the housing market is building up momentum. Individuals who want to purchase a home in paradise should act fast if they want to secure both the most ideal rates and the lowest cost properties.
2 Point Highlight
If you’re looking for a home in paradise, one of the first things you’re going to consider are the Hawaii mortgage rates.
Hawaii mortgage rates have been at rock bottom for quite some time, and there’s really nowhere to go but up.
These mortgage rates are historic lows. It is unlikely that they will go any lower, though they may rise in the coming years as the property market continues to rebound. In fact, the mortgage rates have been going up slightly over 2015, and are likely to continue slowly rising throughout 2016 and beyond as the local real estate market continues its recovery. However, mortgage rates are extremely complex and they are relative not only to the real estate market and the economy as a whole. It is unlikely that mortgage rates will ever hit the prior highs of 6%, though they may approach or even breach 4% within the next year or two as interest in these properties continues to rise.
Hawaii mortgage rates have been at rock bottom for quite some time, and there’s really nowhere to go but up. Right now is one of the most ideal times to buy because the economy is still recovering and the housing market is building up momentum. Individuals who want to purchase a home in paradise should act fast if they want to secure both the most ideal rates and the lowest cost properties.
2 Point Highlight
If you’re looking for a home in paradise, one of the first things you’re going to consider are the Hawaii mortgage rates.
Hawaii mortgage rates have been at rock bottom for quite some time, and there’s really nowhere to go but up.
