Best Mortgage Lenders on Big Island
Aloha Dear Friends,
Buying a home is one of the biggest investments most people make in their lives. For many, a mortgage is the only way to achieve this dream. However, mortgages come in different types, and the interest rates associated with them can be high or low, depending on the prevailing market conditions.
As we know, the interest rates are higher right now with a 30-year fixed rate, you are looking at 6.63% and a 15-year fixed rate is currently at 6.38%.
In this blog, we’ll discuss the different types of mortgages and how mortgage rates change over time. We’ll also look at how homeowners can refinance their mortgages when rates are high to save money.
Hawaii is a beautiful and unique place to live, but it also comes with its own set of challenges when it comes to buying a home. With high housing costs and unique lending requirements, it’s important to understand the different types of mortgages available in Hawaii, how mortgage rates can change, and how to refinance a high-rate mortgage. Choosing the right mortgage lender in Hawaii can make a big difference in the home buying process.
Types of Mortgages in Hawaii
Conventional mortgages are the most common type of mortgage and are not backed by the government. In Hawaii, conforming loans have a maximum loan limit of $822,375 in 2021. However, Hawaii also has high-cost areas where the maximum limit can be as high as $1,233,550.
Jumbo mortgages are used to finance high-priced homes that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. In Hawaii, jumbo mortgages are commonly used due to the high housing costs.
FHA mortgages are backed by the Federal Housing Administration and are designed for first-time homebuyers and those with lower credit scores. The maximum loan limit for FHA mortgages in Hawaii is $822,375 in 2021.
VA mortgages are designed for veterans, active-duty military personnel, and surviving spouses. These loans are backed by the Department of Veterans Affairs and often require little or no down payment.
How Mortgage Rates Change
Mortgage rates in Hawaii, as in other places, are influenced by a number of factors, including inflation, economic growth, and government policy. In addition, Hawaii’s unique geographic location can also have an impact on mortgage rates. Since Hawaii is an island state, it can be more expensive to transport goods and materials, which can lead to higher overall costs and, in turn, higher interest rates.
How to Refinance a High-Rate Mortgage
If you currently have a high-rate mortgage, refinancing can be a good option to lower your monthly payments and save money over the life of the loan. Refinancing involves taking out a new loan with a lower interest rate and using the proceeds to pay off your existing mortgage.
To refinance a mortgage, it’s important to shop around and compare rates from different lenders. Additionally, it’s important to make sure you have a good credit score and a stable source of income before applying for a refinance.
Benefits of Using a Good Mortgage Lender
Choosing the right mortgage lender can make a big difference in the home buying process. A good mortgage lender can help you navigate the complex lending process and find the best mortgage for your unique situation. They can also help you understand the different types of mortgages available in Hawaii, and guide you through the process of refinancing a high-rate mortgage if necessary.
3 Mortage Lenders in Hawaii
1. ClearPath Lending
ClearPath Lending (NMLS #936436) is built on the philosophy of always putting the needs of their clients first and keeping the process simple. They have a team of experienced mortgage professionals who can help you find the best mortgage for your needs, and they offer competitive rates and personalized service. Sr. Loan Officer Helena Chapman (NMLS 1525854)
2. Hawaii Mortgage Company
Hawaii Mortgage Company is a local mortgage company that specializes in providing a range of mortgage options, including conventional, VA, and FHA mortgages.
3. Hawaii Mortgage Experts
Hawaii Mortgage Experts is a local mortgage company that offers a range of mortgage options, including conventional, VA, FHA, and USDA mortgages.
In conclusion, understanding the different types of mortgages available and how mortgage rates can change, help you make informed decisions. Refinancing a high-rate mortgage can save you money over the life of the loan, and working with a good mortgage lender can help you navigate the process with confidence.
There are many mortgage companies in Hawaii, so do your own research and compare rates and services before choosing a lender.
If you have any questions feel free to reach out anytime: 808 333 2127