Interest Rate
6.409%
APR*
6.476%
Average home price
$636.451

Buying a home in Hawaii? You’ll need a favorable mortgage rate to afford your new home. Lenders in Hawaii look at your income, credit score, debt-to-income ratio, and ability to make a down payment before giving you your final mortgage rate.

To set yourself up for the best mortgage rate in Hawaii, start with a self credit check and fix any issue if you can. Then make sure your documents are ready for submission, and ask a reputable lender to preapprove you for a home loan before you start jumping from island to island to find your ideal bungalow.

Here’s a quick look at current Hawaii mortgage rates:

Loan Program Mortgage Rate APR* 1 Day Change
Conventional 30 year fixed 6.409% 6.476% Unchanged
Conventional 15 year fixed 5.446% 5.642% +0.06%
Conventional 5 year ARM 5.552% 5.409% Unchanged

Data source: ©Zillow, Inc. Use is subject to the Terms of Use

Buying a Home in Hawaii

Dreaming of sun and sand year round if you buy a home in Hawaii? People love the Aloha State, and for good reason. Here’s what you need to know:

Hawaii is possibly one of the most enjoyable states to live in, although it can be extremely expensive. 1.4 million people live in Hawaii, and more than one in five cluster in the state’s five biggest cities:

  • Honolulu
  • Pearl City
  • Hilo
  • Kailua
  • Kahului

The cost of a Hawaiian home skews high. Hawaii ranks 1st in US homes for sale at average price, and 15th for homes over $1,000,000. Get preapproved before dipping your toe into Hawaii’s competitive residential real estate market!

First-time Homebuyers

There aren’t as many advantages for first-time home buyers in Hawaii as in other states. However, you may qualify for help through a program administered by the Hawaii Housing Finance & Development Corporation (HHFDC.)

The HHFDC Affordable Resale Program is run as a lottery. Lucky recipients can benefit from assistance finding an affordable home, but be aware you’ll have to live in it for at least ten years, or the program has buy back rights. If the home appreciates, up to 30% of the proceeds from its sale will also go back into the program.

You’ll need to meet certain income limits (sufficient for you to be able to afford the loan for the home on your own, but not so high that you exceed the HHFDC’s annual household income limit.)

Refinancing in Hawaii

There may come a time when it makes sense to refinance a home in Hawaii, especially if there’s a chance to secure a lower Hawaii mortgage rate. You can do any of the following:

  • Save money over time by refinancing at a lower rate
  • Have a lower payment every month when you refinance based on the home’s value
  • Take money out from the equity in your home with a cash-out refinance
  • Say goodbye to private mortgage insurance (PMI) payments with a refinance

You might be able to get a streamlined refinance if your loan is of the right type. Ask your lender for more information.

GUIDES

Buying a Home?

Each step-by-step guide is designed to shepherd you through a process from start to finish. Know what to expect and how to proceed, no matter where you are in your home buying journey.

1 The First Step in Buying a Home – Preapproval

What Is a Mortgage Preapproval? | How Much Will My Monthly Payment Be? | How Much Will My Down Payment Be? | How Long Does a Mortgage Preapproval Last? | What Is the Difference Between a Standard Preapproval and an Underwritten Preapproval?

Read More

3 How much money do I need?

How Can I Lower My Mortgage Payment? | How Can I Lower My Closing Costs? | When Do I Pay Out-Of-Pocket Costs? | What are Prepaid Items or Escrows? | What Will My Closing Costs Be?

Read More

4 The Basics of Mortgage

What Documents Need to be Updated During the Home Loan Process? | What Contingencies Do I Need? | How Important is the Closing Date? | Steps in the Loan Process | Understanding Common Mortgage Terms

Read More

5 Finding a Real Estate Agent

What Are the Top 6 Questions to Ask a Real Estate Agent? | Should I Use the Seller's Real Estate Agent? | Are Online Discount Realty Services a Good Idea? | How Much Does a Buyer's Real Estate Agent Cost? | Why Do I Need a Real Estate Agent to Buy a Home?

Read More
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