If you are in Hawaii looking for the best mortgage rates, there is good news for you. This article presents to you the best mortgage rates in Hawaii.
Please know that to find the lender in Hawaii that is right for you, you will need to find the optimal mix of low rates and reliable service.
This is especially important due to the high cost of real estate in Hawaii, which can cost you tens of thousands of dollars more in additional interest when it comes to differences of a fraction of a percent.
What is a Mortgage?
A mortgage is a loan from a bank or a financial institution that helps the borrower purchase a house.
Also know that a mortgage is secured by the home itself, so if the borrower defaults on the loan, the bank can sell the home and recoup its losses.
It is important to state that mortgage payments are usually monthly and consist of four components: principal, interest, taxes and insurance.
Where to get the Best Mortgage Rates in Hawaii
Bank of Hawaii
Bank of Hawaii tops in the lender chart for first-time home buyers. This is due to its low fixed-rates and convenient branch network.
With over 32,000 loans originated over the past five years, no other mortgage lender is more active in Hawaii. Bank of Hawaii is an excellent place to begin shopping for your first starter home.
However, it has limited selection of conventional fixed-rate products. Also, it is not as competitive on government loan products.
First Hawaiian Bank
While it comes in behind Bank of Hawaii in loan volume, First Hawaiian has seen the fastest growth-rate in refinance loans among Hawaii’s top local lenders.
It is good for dedicated loan officer and in-house servicing. Also, it is good for notable selection of adjustable rate products. However, it is bad for average fixed-rate offers when compared to other local lenders.
Quicken Loans also provides one of the best mortgage rates in Hawaii. It is the best online mortgage lender. This is as a result of its exceptional track record for customer service and user-friendly application process.
Quicken has seen the fastest growth-rate in refinancing mortgages over the past five years and stands among the top two lenders in FHA and refinance loans originated in Hawaii.
It is good for flexible loans which allow users to customize their term. On the other hand, it is bad on average rates for conventional loans. It does not also offer home equity loans.
Navy Federal Credit Union
Navy Federal Credit Union tops on the recommendation for veterans, service members and their families. It is the fastest growing military lender in Hawaii and has seen its VA loan volume increase by more than 18% over the past five years.
It is a highly accessible lender with branches located in military bases around the world. However, borrowers unaffiliated with military cannot upload or tract applications online.
Guild Mortgage also provides one of the best mortgage rates in Hawaii. It tops the lender chart for borrowers who need an extra hand when it comes to down payments or credit.
This is a result of its diverse selection of government-backed mortgage products. Guild is one of the fastest-growing FHA lenders among mortgage companies in Hawaii.
Mortgage Mistakes to Avoid
When applying for the best mortgage rates in Hawaii, please avoid the following;
· Rushing in blind
Make sure you take your time. A house is a huge investment and any mistakes you make will follow you for a long time. Make sure you take some time to plan out your strategy.
For a home mortgage you are going to need good credit and a decent credit history. So check your numbers and start making moves to improve any problem areas in your credit.
Take a few months to start budgeting for extra home hunting expenses as well. You can never be too prepared.
· Do not Underestimate Costs
It is easy to look at the price of the house, your down payment and the closing costs when you are budgeting to move into a new home. But many people are caught off guard by expenses they did not initially consider.
Insurance and taxes are going to factor in as well. It’s not a bad idea to sit down with a trusted financial advisor to get the whole picture before setting a savings goal.
The more money you save the better loan you can potentially qualify for.
Sometimes we get excited and try to do everything at once, but applying for a mortgage is really something that deserves your total attention.
It is tempting to open new credit cards or start messing with personal loans since you have already got your credit report laid out in front of you. However avoid doing so.
New lines of credit will lower your odds of a low interest rate.
· Last minute deposits
If you are going to be shuffling money around, do so a few months before you apply for a mortgage. This is called seasoning your assets. It is incredibly simple all you have to do is wait.
· Forgetting to lock-in
Mortgage rates are incredibly fluid. The rate you were quoted early in the morning may not be the same rate available to you in the afternoon.
Once you are happy with your mortgage rate, be sure to lock it in. Tell your lending institution, your broker, or your bank when you are ready to lock in your rate.
The lock in will not be permanent, and may only be guaranteed for a matter of weeks or even days. But for that lock in period, you will be safe from any rate changes.
· Not reading the fine print
Read your loan documents and then read them again. If anything unsavory is in the works, it is going to pop up in the terms and conditions somewhere.
Make sure you know exactly what you are agreeing to and what your requirements are.
· Ignoring other options
Do not get tricked into thinking all mortgages are the same. Despite what companies and lenders want you to think, it is possible to find better deals by shopping around a bit.
Get your quotes and a general idea of several different lenders before picking one. Approach mortgage shopping the same way you approached your general house hunting.
Ways to Pay off Mortgage Rates in Hawaii Faster
- Make an Initial Payment
- Second Payment Towards the Principal
- Velocity Banking Strategy
- Downsize Expenses to Maximize Repayment
- Refinance Your Mortgage
- Make a Large Down Payment
Though it may seem as if there are no good mortgage rates around the world, Hawaii still has some good option.
The current global economic status may affect mortgage rates in some countries; it is pertinent to state here that Hawaii stands exceptional.
The above discussed options provide the best mortgage rates in Hawaii. Thus, you can make more inquiry to ascertain which one suite your need.