Hawaii Mortgage Rates
Compare Hawaii mortgage rates and choose the best option for your needs.
Mortgage in Hawaii: Top Lenders in 2024
Are you considering purchasing a home in Hawaii? Utilizing a mortgage loan is a convenient method, applicable to various property types, including residential estates and apartments. It's important to note that the terms and conditions of home loans can vary significantly among different mortgage lenders. To estimate your future expenses, you can utilize our mortgage calculator. In this guide, we will explore some of the highly regarded lenders and assess which ones are worthy of consideration.
HA Mortgage Lenders Comparison
Each of the lenders reviewed in this guide is reputable and trustworthy, offering competitive rates and demonstrating a strong track record. To provide you with comprehensive information, we will compare them based on various key criteria, including the Annual Percentage Rate (APR), the minimum down payment, minimum requirements, and more. This comparison will help you make an informed decision about which lender aligns best with your specific needs and preferences.
Paradise Home Mortgage
Paradise Home Mortgage, the leading mortgage broker in Hawaii, has recently celebrated its 15th anniversary of service. Along with its operations in Hawaii, the broker also serves customers in California, Colorado, Florida, and Texas. Offering a range of mortgage programs, Paradise Home Mortgage provides options such as 15-year and 30-year fixed-rate loans, as well as adjustable-rate loans with shorter terms (5 - 10 years). It also offers non-conforming loan options with term lengths ranging from 5 to 30 years, including jumbo loans up to $2.5 million, and government-backed FHA and VA plans. Additionally, Paradise Home Mortgage provides a special FHA 203K loan for older properties that require renovation.
| Pros: | Cons: |
|---|---|
| Wide range of mortgage programs. Paradise Home Mortgage offers various mortgage programs, including conventional fixed-rate loans, adjustable-rate loans, jumbo loans, and government-backed FHA and VA loans. Paradise Home Mortgage provides borrowers with flexibility and options to choose a mortgage product that suits their needs. | Limited geographic presence. While Paradise Home Mortgage operates in multiple states, its presence is limited to Hawaii, California, Colorado, Florida, and Texas. If you are looking for a mortgage outside of these states, you will need to consider alternative lenders. |
| Experience and reputation. With 15 years of service, Paradise Home Mortgage has established itself as a reputable mortgage broker in Hawaii. Their track record and experience in the industry can provide borrowers with confidence and trust in their services. | Lack of information on rates and requirements. The information provided does not include specific details about interest rates, down payment requirements, and eligibility criteria. Borrowers need to gather comprehensive information on these factors to make an informed decision. |
| Specialized loan options. Paradise Home Mortgage offers specialized loan options such as the FHA 203K loan, which is designed for older properties that require renovation. This can be beneficial for borrowers looking to purchase and renovate a property in Hawaii. | Potential for higher rates. Without specific rate information, it is unclear how competitive Paradise Home Mortgage's rates are compared to other lenders. Borrowers should compare rates and terms from multiple lenders to ensure they are getting the most favorable terms for their mortgages. |
AmeriSave
AmeriSave a nationwide lender founded in 2002 with its origins in Georgia, has gained a strong reputation in the mortgage industry. The company is known for offering enticing deals and benefits to borrowers in the state. Their credibility is further supported by their excellent rating from BBB (A+) and a positive customer rating of 4.3/5 on Trustpilot.
While AmeriSave advertises a competitive rate of 4.899%, it's important to note that this rate requires a FICO score of 740 and a 20% down payment. In reality, the actual rate you qualify for may be higher than what's advertised. For conventional loans, a credit score of 620 is typically required, while government-insured plans may be accessible with a credit score of 600 or higher.
When considering AmeriSave as a lender, it's essential to carefully assess the specific terms and conditions it offers, including potential variations in interest rates based on individual factors. Additionally, it's recommended to compare rates and terms with other lenders, gather comprehensive information about fees and closing costs, and consult with mortgage professionals to make an informed decision that suits your financial situation and objectives.
| Pros: | Cons: |
|---|---|
| Nationwide presence. AmeriSave is a nationwide lender, including operations in Hawaii. AmeriSave provides borrowers with the convenience and accessibility of working with a well-established lender that has a strong presence across different states. | Advertised rates vs. actual rates. While AmeriSave may advertise attractive rates, it's important to note that the actual rate you qualify for may be higher than what's advertised. Factors such as credit score, down payment, and loan structure can influence the final interest rate offered. |
| Tempting offers. As AmeriSave originates from Georgia, it often extends tempting offers to the state of Hawaii. | Limited loan options. While AmeriSave offers conventional loans and government-insured plans, the available loan options may be limited compared to other lenders. Borrowers with specific financing needs or unique circumstances may find that AmeriSave's loan programs do not fully align with their requirements. |
| Credibility and trustworthiness. AmeriSave has established credibility in the mortgage industry, as evidenced by its excellent rating from BBB (A+) and a positive customer rating of 4.3/5 on Trustpilot. This demonstrates reliable service and customer satisfaction. | Additional factors to consider. When considering AmeriSave or any lender, it's crucial to thoroughly review the terms and conditions, including potential fees, closing costs, and customer service quality. Comparing rates and loan options from multiple lenders is recommended to ensure you secure the most suitable mortgage for your needs. |
Quicken Loans Mortgage
Quicken Loans is the previous brand name of Rocket Mortgage, the US-wide leader in capitalization across consumer lenders, adopted in 1999. With Rocket Mortgage, you have access to the same comprehensive options, terms, and services. These offerings encompass a wide range of mortgage products, including conventional loans (with both fixed and adjustable rates), jumbo loans, home equity loans, HELOCs (Home Equity Lines of Credit), as well as government-insured programs such as FHA and VA loans, available for both purchase and refinancing.
To qualify for a conventional loan, a minimum credit score of 620 is required. The advertised APR for a 30-year fixed-rate mortgage is 7.199%, which is relatively higher compared to similar offers in the market. It's important to note that rates can vary based on individual circumstances and market conditions.
Rocket Mortgage operates in all states across the United States, including Washington D.C., providing its services to borrowers nationwide.
When considering Quicken Loans/Rocket Mortgage, it's advisable to carefully review the specific terms, conditions, and rates provided by the lender. Comparing multiple lenders and exploring different loan options can help ensure you secure the most suitable mortgage for your needs and financial goals.
| Pros: | Cons: |
|---|---|
| Wide range of mortgage options. Quicken Loans Mortgage offers a variety of mortgage programs, including conventional loans, jumbo loans, FHA and VA loans, and more. The Lender allows borrowers in Hawaii to choose the loan that best fits their needs and financial situation. | Higher interest rates. While Quicken Loans Mortgage offers competitive rates, it's important to note that the advertised APR for their 30-year fixed-rate mortgage may be relatively higher compared to other lenders in the market. Borrowers in Hawaii should carefully consider the interest rates and compare them with other available options. |
| Established reputation. Quicken Loans Mortgage (Rocket Mortgage) is a well-known and reputable lender with a long history in the industry. Its experience and expertise can provide borrowers with confidence and peace of mind throughout the mortgage process. | Limited in-person support. As an online-focused lender, Quicken Loans Mortgage may have limited in-person support in Hawaii. Some borrowers prefer the ability to meet face-to-face with loan officers or have local support throughout the mortgage process. |
| Online convenience. Quicken Loans Mortgage offers a fully online application and approval process through their Rocket Mortgage platform. This can save time and make it more convenient for borrowers in Hawaii to apply for and manage their mortgages. | Lack of local market expertise. Quicken Loans Mortgage operates nationwide, which means their loan officers may have limited knowledge of the specific housing market and regulations in Hawaii. Borrowers in Hawaii may prefer working with a lender who has a deeper understanding of the local market dynamics. |
Average Mortgage Rate in Hawaii from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in Hawaii.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in Hawaii
| Criteria | Amount, $ |
|---|---|
| The median home value in Hawaii | $755,561 |
| The income required to buy the median priced home in Hawaii | $123,796 |
| The monthly mortgage payment required to buy the median priced home in Hawaii | $2,867 |
| The median household income for Hawaii | $90,187 |
Things to Consider When Choosing a Mortgage Lender
Obtaining a mortgage loan is a serious long-term commitment, with a term of 15 to 30 years. It is important to carefully evaluate and consider several key aspects before entering into an agreement with a particular lender.
Type of Lender
When it comes to getting a mortgage loan, two popular options are usually considered: traditional banks and online mortgage lenders. Each option has its advantages and considerations:
- Banks. Banks often offer competitive interest rates and have a long-standing presence in the mortgage market. However, they typically have stricter credit requirements and thorough credit checks. This means that borrowers with less-than-perfect credit may find it challenging to qualify for a mortgage. Additionally, the approval process with banks can take longer due to their extensive documentation and evaluation procedures.
- Online Mortgage Lenders. Online lenders provide a more streamlined and efficient mortgage application process. They often have quicker turnaround times, allowing borrowers to get pre-approved and secure financing faster. Online lenders may also have more flexible eligibility criteria, making it easier for a wider range of homebuyers to qualify for a mortgage. This can be particularly beneficial for individuals with less traditional financial situations or lower credit scores.
APR and Fees
Every mortgage loan comes with associated costs that go beyond just the interest rate. These costs include additional fees like the origination fee, mortgage insurance fee, and closing costs. It's important to consider these expenses when evaluating the overall cost of a mortgage.
Currently, the average mortgage rate for a 30-year fixed-rate loan in Hawaii is 6.58%, as of the time of writing. However, it's important to note that mortgage rates can fluctuate over time and may vary depending on individual factors such as credit score, loan amount, and down payment.
When considering a mortgage, it's essential to carefully review and compare the interest rates and associated costs from different lenders. This will help you make an informed decision and determine the most suitable mortgage option for your financial situation and long-term goals. Additionally, it's advisable to seek professional advice from mortgage experts or financial advisors to ensure you have a comprehensive understanding of all the costs involved in obtaining a mortgage.
Terms and Conditions
When choosing a mortgage, it's crucial to consider the minimum required down payment, which can range from 0% to 20% depending on various factors such as the loan type and your current status (such as military, employed, self-employed, etc.). The down payment amount can significantly impact your upfront costs and monthly payments.
Another important factor to consider is the loan term, which refers to the total length of the mortgage. The most common options are 15 and 30 years. A shorter loan term, such as 15 years, typically results in higher monthly payments but allows you to pay off the mortgage faster and potentially save on interest payments over the long run. On the other hand, a longer loan term, such as 30 years, generally leads to lower monthly payments but may result in paying more interest over the life of the loan.
It's important to assess your financial situation, long-term goals, and monthly budget to determine the most suitable down payment amount and loan term for your needs. Additionally, consulting with lenders or mortgage professionals can provide valuable insights and guidance to help you make an informed decision.
What Mortgage Lender is the Number One in Hawaii?
The market for reliable FHA mortgage lenders is extensive, making it difficult to provide a definitive answer to this question. The choice of the right lender depends on various factors. Rocket Mortgage, as one of the industry leaders, processed a loan volume of $11.5 billion in 2021. However, it's important to explore and consider a range of options before making a decision. To help you make an informed choice, you can refer to our list of recommended lenders, which provides valuable insights and information.
First-Time Homebuyer Programs in Hawaii
Buying a home for the first time can be a daunting task, but residents of Hawaii have access to several government programs aimed at making homeownership more affordable.
The Federal Housing Administration (FHA) loan program offers insurance from the federal government, with the insurance fee included in the total loan cost. This program provides significant benefits, including a low-interest rate and minimal credit requirements. Buyers can have a FICO score as low as 500 and a debt-to-income ratio of just 50%.
The USDA loan program is designed for individuals living in rural areas. Participants in this program can obtain a mortgage loan with a zero down payment. However, their annual income must not exceed 115% of the average income in the region.
VA loan programs are insured by the Department of Veterans Affairs and are available to former military personnel or their spouses. These loans offer favorable terms and conditions to support those who have served in the military.
These governmental programs provide valuable options for first-time homebuyers in Hawaii, offering opportunities for lower down payments, favorable interest rates, and relaxed credit requirements. It is recommended that you further explore these programs to determine which one best meets your specific needs and eligibility criteria.
Pre-Approval: What Does It Mean?
Preliminary approval serves as a confirmation of a prospective homebuyer's credibility and demonstrates to home sellers that lenders are prepared to approve a mortgage loan for the buyer. To obtain pre-approval, individuals must provide documentary evidence of their ability to repay the loan. This typically includes earning statements, account statements, a W2 form, or alternative proof of income covering at least two years. Additionally, completing the Uniform Residential Loan Application form is necessary as part of the pre-approval process.