Current mortgage rates in Hawaii

As of Tuesday, December 5, 2023, current interest rates in Hawaii are 7.35% for a 30-year fixed mortgage and 6.54% for a 15-year fixed mortgage.

As of August 2023, the median single-family home price in Hawaii was $836,677, according to Zillow's Home Values Index.

Refinance rates in Hawaii

Refinance rates are way up from historic lows, but a cash-out refinance still might make sense for you, especially if you have considerable equity to pull from. Use Bankrate’s mortgage refinance calculator to run the numbers.

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 percent. If you make a down payment of less than 20 percent, 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 percent down payment. As with a conventional loan, if you put down less than 20 percent 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.

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.
• HHOC Mortgage Deferred Closing Costs Assistance Loan: This program includes a 15-year deferred loan of up to $15,000 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 offers up to a $3,500 discount on closing costs.
• Honolulu Down Payment Loan Program: Available to homebuyers on Oahu, 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 percent each year.

Additional Hawaii mortgage resources

• Hawaii first-time homebuyer resources
• Hawaii loan limits by county
• Hawaii mortgage lenders
• Guide to buying a house in Hawaii
• 2023 cost of living in Hawaii
• Best homeowners insurance in Hawaii 2023

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:

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.

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.

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.

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.

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.