Hawaii Mortgage Rates: Hawaii Mortgage Rates Stable After Recent Spike
January 21, 2011 (FreeRateUpdate.com) – At the beginning of this week, Hawaii mortgage rates slightly increased by 0.125 percent over last week. For a 30-year fixed rate conforming mortgage in Hawaii the mortgage rate is 4.625 percent and 4.000 percent for a 15-year fixed rate conforming mortgage loan. For a Hawaii 5/1 adjustable rate mortgage, the mortgage rate is 3.125 percent. Hawaii borrowers that are well qualified are able to obtain a mortgage with these low mortgage rates at only 0.7 to 1.0 origination points.
For a FHA home mortgage in Hawaii, the FHA mortgage rate also increased slightly at the beginning of the week. The FHA mortgage rate is 4.500 percent for a Hawaii 30-year fixed FHA mortgage loan, which is an increase of 0.125 percent over last week’s mortgage rate. The FHA mortgage rate is 4.000 percent for a Hawaii 15-year fixed FHA mortgage, which is an increase of 0.250 percent over last week’s mortgage rate. An FHA 5/1 adjustable rate mortgage loan is currently at 3.000 percent, which has remained unchanged over last week’s mortgage rate. The Hawaii FHA mortgage is still the most popular amongst Hawaii borrowers because of their favorable loan terms. Note that FHA mortgage rates are higher than conforming mortgage rates. This is primarily due to the higher closing costs involved in an FHA loan. Additional fees that the Federal Housing Administration charges to Hawaii borrowers include, but are not limited to, upfront mortgage insurance premiums, annual mortgage insurance premiums, additional residential appraisals, and so on.
Well-qualified borrowers would have a nearly perfect credit history with minimal late payments, a credit score above 580 (sometimes upwards of 620,) reliable income sources, and enough financial reserves to cover a down payment of at least 10 percent, which is verified by bank statements provided by Hawaii borrowers. The Federal Housing Administration is known to have less stringent standards. However, due to recent circumstances, the Federal Housing Administration has tightened underwriting standards and now qualifying more closely mimics the guidelines of conforming mortgage loans.
Hawaii jumbo mortgage rates are unchanged this week over last week. A 30-year jumbo mortgage has a mortgage rate of 5.125 percent. A 15-year jumbo mortgage has a mortgage rate of 4.750 percent. For a
Hawaii 5/1 adjustable rate jumbo mortgage, the jumbo mortgage rate is 3.875 percent, which is unchanged as well. For a majority of average areas in the nation the conforming loan limit is $417,000, and for the higher cost areas the conforming loan limit is $729,250. Hawaii, however, is not subject to either loan limit. Where New York City and Chicago would qualify for the higher cost loan limit, Hawaii is held to different standards. For Alaska, Guam, and Hawaii, average areas are subject to a $625,500 loan limit and higher cost areas are subject to a $938,250 loan limit. Any Hawaii mortgage loan that exceeds these loan limits is considered a true jumbo mortgage loan.
The small spike in mortgage rates at the beginning of this week is attributed to the decrease in home construction throughout Hawaii. Homebuilders, therefore, have a pessimistic view of the future of construction in recent years. Plus, mortgage backed securities and mortgage rates have an inverse relationship, which means that they move in opposite direction. So, when MBS prices go down, Hawaii mortgage rates go up. Therefore, as home construction continues to slowdown and MBS prices declines, Hawaii mortgage rates are not expected to decrease in the near future.
Hawaii mortgage rates
Hawaii 5/1 adjustable rate jumbo mortgage, the jumbo mortgage rate is 3.875 percent, which is unchanged as well. For a majority of average areas in the nation the conforming loan limit is $417,000, and for the higher cost areas the conforming loan limit is $729,250. Hawaii, however, is not subject to either loan limit. Where New York City and Chicago would qualify for the higher cost loan limit, Hawaii is held to different standards. For Alaska, Guam, and Hawaii, average areas are subject to a $625,500 loan limit and higher cost areas are subject to a $938,250 loan limit. Any Hawaii mortgage loan that exceeds these loan limits is considered a true jumbo mortgage loan.
The small spike in mortgage rates at the beginning of this week is attributed to the decrease in home construction throughout Hawaii. Homebuilders, therefore, have a pessimistic view of the future of construction in recent years. Plus, mortgage backed securities and mortgage rates have an inverse relationship, which means that they move in opposite direction. So, when MBS prices go down, Hawaii mortgage rates go up. Therefore, as home construction continues to slowdown and MBS prices declines, Hawaii mortgage rates are not expected to decrease in the near future.
Hawaii mortgage rates