Hawaii Mortgage Rates

May 24, 2015 09:15 PM Eastern

Refinance rates now in HONOLULU, HI [Change this]

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Home Price (Purchase)
When you get a mortgage to purchase a home, the lender uses the lower of the agreed-upon purchase price or the property's appraised value to determine your maximum loan amount. The loan amount divided by the property home price equals your loan-to-value ratio, or LTV. That ratio is one of the major factors that lenders use to set your mortgage rate. If your LTV exceeds 80 percent, you'll probably be required to pay mortgage insurance, which increases your monthly payment. If the property appraises for less than the agreed-on purchase price, you are not usually required to complete the purchase.
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Home Value (Refinance)
This is your estimate of the current value of your property. When you refinance, your home is almost always evaluated by a licensed appraiser. The refinance loan amount divided by the property's appraised value equals your loan-to-value ratio (LTV), and that number is one of the major factors that determine your mortgage rate. To get an accurate refinance rate quote, your home value estimate must be reasonably accurate.
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Down Payment
The down payment is the amount you pay upfront when you finance property. Your purchase price minus your down payment equals your mortgage amount. The higher your down payment, the more likely you are to be approved for a home loan. If your down payment is less than 20 percent of the purchase price, you'll probably be required to pay for mortgage insurance, which increases your monthly payment.
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Credit Score
Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.

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Mortgage rate quotes displayed on LendingTree LoanExplorer℠, including loan pricing data, rates and fees, are provided by third party data providers including, but not limited to, Mortech®, a registered trademark of Zillow®, LoanXEngine, a product of Mortgage Builder Software, Inc., and LoanTek, Inc.

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Hawaii Mortgage Interest Rates and Loan Options
The State of Hawaii is a chain of islands in the Pacific Ocean, and has long been a favorite destination for vacationers and honeymooners seeking a quiet tropical paradise. Some 1.3 million permanent residents call Hawaii home.  

In times past, the natives relied on fishing and coffee and sugar production. Today, Hawaii's biggest industry is tourism, with hundreds of the world's finest beach resorts spread out over its many islands.

Hawaii boasts a diversity of cultures whose known history goes further back than most of the other states. Even so, it was admitted to statehood rather recently. The natural topography of Hawaii is equally diverse, from the lush garden landscapes of Kauai to the bustling metropolis that is Honolulu.  

Hawaii offers the second lowest property tax rates in the country in spite of property values that are generally higher than those of most other states.  Hawaii offers potential residents many housing options. Those looking for a new loan on a property at affordable HI mortgage rates will find many financing options there as well.

Happy Hawaiian Homeowner Program and Current HI Mortgage Rates
Tribal members and native Hawaiians can participate in the Happy Hawaiian Homeowner program, also known as the Section 184A Native Hawaiian Housing Loan Guarantee Program. It is a financing option available for families to construct, purchase and rehabilitate homes located on Hawaiian homelands. The loan is made through a lending partner and then guaranteed 100 percent by the Hawaiian government. This is a great loan option for borrowers who qualify, and lenders pass on the benefits of low-risk lending in the form of attractive terms with mortgage interest rates at or below market level.

Special Loan Options with Attractive Hawaii MortgageRates
Through the state's Housing Finance and Development Corporation, special programs are made available for homeowners and developers of affordable housing, offering them attractive current HI mortgage rates. 

Hula Mae is one program for families of low and moderate income. Using state tax-exempt revenue bonds, the Hula Mae Program provides mortgage loans to eligible buyers with below market interest rates.

Hawaii also participates in the Mortgage Credit Certificate program, which allows up to 20 percent of a homeowner's mortgage interest to be deducted as a direct tax credit.  This allows homeowners to have more available cash with which to qualify for a traditional or conventional mortgage loan. 

The Making Home Affordable program is offered to borrowers who pay their mortgages on time but, due to a decrease in the value of their home, may not be able to refinance at a lower mortgage rate.  Additionally, the program helps mortgage holders who have trouble making their current payments to obtain a loan modification to make payments easier to handle.