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Mortgage rates in Hawaii
Interest rates on a 30-year $300,000 conventional mortgage start at around 3.500%
If you have a credit score between 700 and 719 and can put 5% down, you’ll generally pay about 3.625% for a 30-year conventional loan with a fixed interest rate on a $350,000 home. But how much interest you pay for your Hawaii home will depend on several factors, including your credit score, loan amount and lender.
Rates were last checked on January 10 and are from the Consumer Financial Protection Bureau (CFPB) website.
Your credit score affects the rate you’ll get
People with higher credit scores generally get lower interest rates because lenders assume they’re less likely to stop paying a mortgage. Here are the most common interest rates in Hawaii by mortgage amount, according to the Consumer Financial Protection Bureau (CFPB).
| Credit score | $200,000 mortgage | $300,000 mortgage | $400,000 mortgage | $500,000 mortgage |
|---|---|---|---|---|
| 620-639 | 4.250% | 4.250% | 4.250% | 4.250% |
| 640-659 | 4.125% | 4.125% | 4.125% | 4.063% |
| 660-679 | 4.000% | 4.000% | 4.000% | 4.000% |
| 680-699 | 3.750% | 3.750% | 3.750% | 3.750% |
| 700-719 | 3.750% | 3.750% | 3.625% | 3.625% |
| 720-739 | 3.625% | 3.625% | 3.500% | 3.500% |
| 740-759 | 3.563% | 3.500% | 3.500% | 3.500% |
| 760-779 | 3.563% | 3.500% | 3.500% | 3.500% |
| 780-799 | 3.563% | 3.500% | 3.500% | 3.500% |
| 800+ | 3.563% | 3.500% | 3.500% | 3.500% |
*Based on a 10% down payment for a 30-year fixed-rate conventional mortgage
Interest rates vary by lender
Interest rates are affected by the economy and the federal funds rate, or the rate that banks charge each other for overnight loans. But they’re also affected by individual lenders, which can have differing overhead costs, profit margins and credit score requirements.
Comparing lenders can help you find the best deal. Select See rates to provide the company with basic property and financial details for personalized rates.
Interest rates also vary by loan type
The type of loan you get can also affect how much you pay for your Hawaii home. 15-year mortgages generally offer lower interest rates than 30-year mortgages, and you’ll see different rates for conventional loans than government loans.
| Loan type | $200,000 mortgage | $300,000 mortgage | $400,000 mortgage | $500,000 mortgage |
|---|---|---|---|---|
| 15-year conventional | 2.875% | 2.750% | 2.750% | 2.750% |
| 30-year conventional | 3.750% | 3.750% | 3.625% | 3.625% |
| 15-year FHA | 3.063% | 2.938% | Not eligible | Not eligible |
| 30-year FHA | 3.688% | 3.688% | Not eligible | Not eligible |
| 15-year VA | 3.250% | 3.000% | 3.000% | 3.000% |
| 30-year VA | 3.625% | 3.625% | 3.500% | 3.500% |
*Based on a 10% down payment, fixed interest rate and 710 credit score
Research ahead of time to get the best rates
Lenders have a lot of control over your loan’s interest rate. Here are a few tips to help you get the most competitive rate possible.
- Ask about different loan programs. Lenders have an assortment of loan programs with varying interest rates. Find out what loan products you may qualify for to find the best deal.
- Fine-tune your credit. Eliminate debt and boost your credit score to qualify for a more competitive rate.
- Weigh the closing costs. Average closing costs in Hawaii can run about 0.82% to 0.92% of the final purchase price. Consider these charges when evaluating the true cost of the home loan.
Home values in Hawaii are forecast to increase
Hawaii has been an expensive place to live for a long time, but 2021 has seen sales prices soar in places like the island of Oahu, where the median home price jumped 20% over last year to break the $900,000 mark. But while home values will continue to rise, according to Zillow, they may not continue at that pace.
Home values in Oahu’s Urban Honolulu and Hilo, located on the Big Island, are predicted to increase by slightly over 12%, while most other cities will see more conservative increases between 5% and 10%.
4 fast facts about the Hawaii housing market
Consider the following facts before jumping into Hawaii’s housing market:
- Home sales in Hawaii have been trending up, with the average sale price of a single-family home increasing more than 44% between 2020 and 2021.
- Cash offers are causing many first-time homebuyers to lose bidding wars on houses across the islands.
- Property taxes in the state are the lowest in the nation at only .28%.
- Nonresidents may have to pay a 7.25% tax to buy a home in Hawaii.
Bottom line
Mortgage rates in Hawaii vary by loan type, and factors like your credit score and lender affect what rate you get. But factors like your credit score and lender affect what rate you get. Compare mortgage lenders and programs to find one that best fits your homeownership goals.
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