Interest Rates
Understanding Mortgage Interest Rates in Hawaii
When you’re buying a home in Hawaii, one of the most important factors in your loan is the interest rate. Your rate affects your monthly payment and how much you’ll pay over the life of your mortgage. Understanding how rates work can help you make smarter financial decisions — and possibly save thousands of dollars.
What Determines Your Interest Rate?
Several factors influence your mortgage rate, including your credit score, down payment, and the type of property you’re financing. Primary residences often qualify for the lowest rates because they’re considered the least risky. Second homes and investment properties may carry slightly higher rates since they’re viewed as higher-risk loans.
How Paying Points Can Lower Your Rate
You can “buy down” your interest rate by paying discount points at closing. Each point costs about 1% of your loan amount and typically lowers your rate by about 0.25%, depending on the loan program. Paying points can make sense if you plan to keep the home long enough to benefit from the lower monthly payments.
Here’s an example to show how it works:
| Loan Amount | Points Paid | Interest Rate | Monthly Payment (Principal & Interest) |
|---|---|---|---|
| $600,000 | 0 points | 7.00% | $3,992 |
| $600,000 | 1 point ($6,000) | 6.75% | $3,892 |
| $600,000 | 2 points ($12,000) | 6.50% | $3,792 |
Paying points upfront can save you money each month and over time, but it’s not always the best choice for everyone. We’ll help you calculate the break-even point — the time it takes for your savings to outweigh the cost of the points — so you can make the best decision for your situation.
At [Your Company Name], we take the time to explain all your options clearly, so you feel confident about your rate and your mortgage plan. Whether you’re buying your first home, a second home, or an investment property, our team will help you find the right balance between rate, cost, and long-term value.
Ready to learn more or see what rate you qualify for? Apply today and let’s start building your Hawaii
Big Island Mortgages by Doug Mallardi
(808) 333-4341 doug@bigislandmortgages.com
Start an online loan application, click here.
Schedule an appointment, click here.
Get A New Mortgage. Get A Better Mortgage. Home loans for all Hawaiian islands.
