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Hawaii Mortgage and Refinance Rates
Current mortgage rates in Hawaii
As of Tuesday, November 5, 2024, current interest rates in Hawaii are 6.94% for a 30-year fixed mortgage and 6.22% for a 15-year fixed mortgage. That represents a drop of more than one full point since the fall of 2023 when mortgage rates were hovering in 7.5% territory.
While mortgage rates have been falling in Hawaii, don’t expect buying a home here to feel like an island breeze. Home prices in Hawaii make it one of the most expensive states in the country, with the median price for a single-family home $1.083 million as of August 2024, according to data from Hawaii Realtors. If you’re looking for the most affordable places, it might be best to focus your search on the island of Hawaii, where the single-family home median price was $555,000 as of August 2024.
Refinance rates in Hawaii
Refinance rates are way up from historic lows, but they’re much more appealing than they were in the fall of 2023. If you recently purchased your home in Hawaii, a refinance could save you a lot of money by reducing your interest rate. If you’ve owned your property here for a long time and have some bigger financial goals, you might be in a position to consider a cash-out refinance to leverage your equity. Use Bankrate’s mortgage refinance calculator to run the numbers.
Hawaii mortgage rate trends
Whether you’re looking for current mortgage rates in Honolulu or elsewhere in The Aloha State, things have been looking quite a bit more promising in recent months. Looking ahead, there is a big question that will determine what happens with rates next: How fast – and — will the Federal Reserve continue to reduce rates?
National mortgage rates by loan type
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed Rate | 6.93% | 6.98% |
| 15-Year Fixed Rate | 6.20% | 6.28% |
| 5-1 ARM | 6.39% | 7.26% |
| 30-Year Fixed Rate FHA | 6.93% | 6.97% |
| 30-Year Fixed Rate VA | 7.01% | 7.05% |
| 30-Year Fixed Rate Jumbo | 6.98% | 7.03% |
Rates as of Tuesday, November 05, 2024 at 6:30 AM
Mortgage statistics for Hawaii
Everything in Hawaii costs more, including housing — part of why it has one of the lowest homeownership rates in the U.S. Here’s a rundown of some key data points to help you navigate the home search:
- Median single-family home sales price, August 2024: $1.083 million
- Median condo sales price, August 2024: $685,250
- Median down payment, June 2024: $195,200
- Homeownership rate, Q4 2023: 61.8%
Sources: ATTOM, Hawaii Realtors, U.S. Census Bureau
Mortgage options in Hawaii
If you’re looking to get a mortgage in Hawaii, consider these loan options:
- Hawaii conventional mortgages: To qualify for a conventional loan, you’ll need a credit score of at least 620 and a debt-to-income (DTI) ratio of no more than 45%. If you make a down payment of less than 20%, you’ll need to pay for private mortgage insurance (PMI), as well.
- Hawaii FHA loans: If your credit history disqualifies you from a conventional loan, you might be eligible for a loan insured by the Federal Housing Administration (FHA). For this type of mortgage, you’ll need a credit score of at least 580 with a 3.5% down payment. As with a conventional loan, if you put down less than 20% on an FHA loan, you’ll be on the hook for mortgage insurance.
- Hawaii VA loans: If you’re an eligible veteran or active-duty member of the military, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee.
- Hawaii jumbo loans: Hawaii’s home prices are notoriously high, which means that more buyers may need to borrow a chunk of money that exceeds the conforming loan limits. If that’s the case, you’ll need to learn more about jumbo loans, which require a down payment of at least 10% and good to excellent credit.
First-time homebuyer programs in Hawaii
If you’re an eligible first-time homebuyer in Hawaii, you might want to consider one or more of these special financing programs:
- HHOC Mortgage Down Payment Assistance Loan: This program requires just 3 percent down and comes with a maximum interest rate of 4.5%.
- HHOC Mortgage Deferred Closing Costs Assistance Loan: This program includes a 15-year deferred loan of up to $15,000 on a 6:1 matching basis to help you cover your down payment and closing costs, including points.
- HawaiiUSA Federal Credit Union first-time homebuyer mortgage program: If you’re a member of this credit union, you might qualify for its first-time homebuyer mortgage, which requires only 3 percent down and waives some loan origination costs.
- Honolulu Down Payment Loan Program: Available to homebuyers on Oahu who meet fairly stringent income restrictions, this program provides a zero-fee, zero-interest, 20-year loan of up to $40,000 to help with the down payment.
- Mortgage credit certificate (MCC): Hawaii’s mortgage credit certificate (MCC) allows you to convert a portion of your mortgage interest into a federal tax credit, up to 20% each year. You’ll need to be within income and purchase price limits to qualify for the credit, and there’s a fee to obtain it.
How to find the best mortgage rate in Hawaii for you
Research shows comparing more than one mortgage loan offer could help you save thousands of dollars in interest costs. Bankrate can help you find the best mortgage deal in today’s volatile rate environment. As you shop around, keep these tips in mind:
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Step 1: Strengthen your credit score
Long before you start looking for a mortgage lender and applying for a loan, give your finances a checkup, and improve your standing if needed. This means pulling your credit score and credit reports. You’re entitled to a free credit report from each of the three main reporting bureaus (Experian, Equifax and TransUnion), which you can get through AnnualCreditReport.com.
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Step 2: Determine your budget
Get a handle on how much house you can afford. One rule of thumb many buyers use to figure out their price range is the 28/36 rule. Keep in mind that a mortgage lender could qualify you for a loan over your budget, but that would leave no room for unexpected expenses.
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Step 3: Know your mortgage options
There are different types of mortgages, including conventional loans with as little as 3 percent down and government-backed loans. If you’re in the market for a jumbo loan, check Hawaii’s county-by-county loan limits.
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Step 4: Compare rates and terms from multiple lenders
Don’t settle on the first lender you talk to. Rate-shop with different lenders — banks, credit unions, online lenders and local independents — to ensure you’re getting the best deal on rates, fees and terms.
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Step 5: Get preapproved for a mortgage
Get a mortgage preapproval with three or four different lenders. This’ll help you understand exactly what loan amount you’d qualify for if you were to apply, and prepare you to make offers on homes.