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The Islands of Aloha

Home Mortgage Rates in Hawaii

Na Pali Coast.

Hawaii Real Estate

Metropolitan Areas

HI Rank US Rank Geography 2016 Pop 2010 Pop Change % △
1 54 Urban Honolulu, HI 992,605 953,207 39,398 4.13%
2 222 Hilo, HI 198,449 185,079 13,370 7.22%
3 256 Kahului-Wailuku-Lahaina, HI 165,474 154,924 10,550 6.81%
4 473 Kapaa, HI 72,029 67,091 4,938 7.36%

Hawaii is a beautiful place to live in because of its climate and culture. If you planning to build a house in Hawaii or to relocate to Hawaii, you need to have an idea of the different mortgages available there. It is better to educate yourself on the established mortgage situation in Hawaii before buying a home or getting a mortgage. There are two types of mortgages available in Hawaii and those are the fixed rate mortgages and the adjustable mortgage rates. The mortgage business in Hawaii is growing by leaps and bounds and this has forced the Government to introduce some new policies involving mortgage brokers. Let us go through the types of mortgage in detail.

A Comparison to Median nationwide Prices

Rainbow Over Honolulu.

During the time of the recession, just like any other industry, the real estate also suffered a major set back. But towards the latter half of 2009, things began to creep back to normalcy. Home buyers who had been dithering till then began to look for homes at low mortgage rates and slowly the sales began to pick up. The growth is still dreadfully slow and there have been more foreclosures than ever because of lack of employment and tight credit. The nationwide median prices rose slightly by 1.4% through the latter half of 2009. The housing prices in Hawaii are rising to the top again when compared to the nationwide prices. The Oahu market is more stable than all of the other cities in Hawaii and even the rest of America. The real estate prices are also really high because of the area’s desirability as a resort, unique history and land size. In certain places in Hawaii the land development is reasonably poor when compared to demand.

Popular Cities in Hawaii

It is not wonder that real estate markets in Hawaii are picking up. Who doesn’t want to live in this charming county? The state of Hawaii is composed of seven islands of which Oahu is the most populated.

Hawaii State Map.

Popular cities in Hawaii are Honolulu, Kapolei, Kailua, Lihue, Kapa'a, Kahului, Kailua-Kona, Hilo and Lanai City. These places are famous for their beaches, bays, basins, craters, cliffs, arches, forests, lakes, islands, streams, ridges, slopes, summits, valleys and swamps. Since tourism reigns supreme in Hawaiian cities it is important to build good hotels, ATMs, banks, etc. for tourist convenience. Tourists can indulge in sports as well as sight seeing and sun bathing at the stunning beaches in Hawaii. Hawaii is a lovely place to retire to and mortgage will be affordable for many retirees.

Sunset Over the Pacific Ocean Near Hana, Maui, Hawaii.

Hawaii Census Data

As of July 1, 2016 the state of Georgia has an estimated population of 1,428,557 across 6,422.63 mi² yielding a population density of 222.43 people per mi² across the state.

The following table highlights the July 1, 2016 populations for each county based on United States Census Bureau estimates.

County 2016 Pop 2010 Pop Change % △
Honolulu 992,605 953,207 39,398 4.13%
Hawaii 198,449 185,079 13,370 7.22%
Maui 165,386 154,834 10,552 6.82%
Kauai 72,029 67,091 4,938 7.36%
Kalawao 88 90 -2 -2.22%

The following table highlights the July 1, 2016 populations of the urban Honolulu and populations across the state based on United States Census Bureau estimates. For Census Designated Places (CDP) where there was no population estimate available for 2016 the 2011-2015 American Community Survey 5-Year Estimates data was used.

All table columns are sortable. Click on the column headers to sort by that column. Click again to sort low to high. Cities with higher levels of population growth typically see the increased demand drive faster real estate price appreciation.

Rank Geography County 2016 Pop 2010 Pop Change % △ Land mi² Pop Den mi²
1 Urban Honolulu CDP Honolulu 351,792 337,256 14,536 4.31% 60.52 5,572.64
2 East Honolulu CDP Honolulu 48,092 49,914 -1,822 -3.65% 23.01 2,169.23
3 Pearl City CDP Honolulu 47,021 47,698 -677 -1.42% 9.11 5,235.78
4 Hilo CDP Hawaii 45,380 43,263 2,117 4.89% 53.39 810.32
5 Waipahu CDP Honolulu 41,165 38,216 2,949 7.72% 2.8 13,648.57
6 Kailua CDP Honolulu 38,722 38,635 87 0.23% 7.76 4,978.74
7 Kaneohe CDP Honolulu 33,654 34,597 -943 -2.73% 6.53 5,298.16
8 Kahului CDP Maui 28,476 26,337 2,139 8.12% 14.45 1,822.63
9 Mililani Town CDP Honolulu 28,021 27,629 392 1.42% 4.01 6,890.02
10 Ewa Gentry CDP Honolulu 22,676 22,690 -14 -0.06% 2.18 10,408.26
11 Kihei CDP Maui 22,401 20,881 1,520 7.28% 9.28 2,250.11
12 Mililani Mauka CDP Honolulu 21,055 21,039 16 0.08% 3.98 5,286.18
13 Schofield Barracks CDP Honolulu 20,858 16,370 4,488 27.42% 2.77 5,909.75
14 Makakilo CDP Honolulu 20,631 18,248 2,383 13.06% 3.82 4,776.96
15 Kapolei CDP Honolulu 18,737 15,186 3,551 23.38% 4.14 3,668.12
16 Wahiawa CDP Honolulu 17,484 17,821 -337 -1.89% 2.07 8,609.18
17 Wailuku CDP Maui 16,064 15,313 751 4.90% 5.32 2,878.38
18 Halawa CDP Honolulu 14,812 14,014 798 5.69% 2.37 5,913.08
19 Ewa Beach CDP Honolulu 14,287 14,955 -668 -4.47% 1.21 12,359.50
20 Royal Kunia CDP Honolulu 14,198 14,525 -327 -2.25% 3.02 4,809.60
21 Waianae CDP Honolulu 13,632 13,177 455 3.45% 5.36 2,458.40
22 Waimalu CDP Honolulu 13,333 13,730 -397 -2.89% 1.83 7,502.73
23 Kailua CDP Hawaii 12,652 11,975 677 5.65% 35.63 336.09
24 Nanakuli CDP Honolulu 12,405 12,666 -261 -2.06% 2.99 4,236.12
25 Kalaoa CDP Hawaii 12,214 9,644 2,570 26.65% 39.17 246.21
26 Lahaina CDP Maui 12,118 11,704 414 3.54% 7.78 1,504.37
27 Hawaiian Paradise Park CDP Hawaii 11,684 11,404 280 2.46% 15.21 749.77
28 Ocean Pointe CDP Honolulu 11,336 8,361 2,975 35.58% 2.03 4,118.72
29 Kaneohe Station CDP Honolulu 11,285 9,517 1,768 18.58% 4.38 2,172.83
30 Waipio CDP Honolulu 11,261 11,674 -413 -3.54% 1.25 9,339.20
31 Waimea CDP Hawaii 10,817 9,212 1,605 17.42% 39.29 234.46
32 Kapaa CDP Kauai 10,794 10,699 95 0.89% 10.01 1,068.83
33 Aiea CDP Honolulu 9,262 9,338 -76 -0.81% 1.66 5,625.30
34 Hickam Housing CDP Honolulu 9,243 6,920 2,323 33.57% 4.59 1,507.63
35 Waihee-Waiehu CDP Maui 9,159 8,841 318 3.60% 4.11 2,151.09
36 Maili CDP Honolulu 8,910 9,488 -578 -6.09% 1.72 5,516.28
37 Makaha CDP Honolulu 8,813 8,278 535 6.46% 2.43 3,406.58
38 Holualoa CDP Hawaii 8,390 8,538 -148 -1.73% 13.2 646.82
39 Ahuimanu CDP Honolulu 8,354 8,810 -456 -5.18% 2.69 3,275.09
40 Pukalani CDP Maui 8,072 7,574 498 6.58% 4.28 1,769.63
41 Haiku-Pauwela CDP Maui 7,846 8,118 -272 -3.35% 15.78 514.45
42 Waikele CDP Honolulu 7,786 7,479 307 4.10% 1.1 6,799.09
43 Kula CDP Maui 7,478 6,452 1,026 15.90% 34.61 186.42
44 Lihue CDP Kauai 7,360 6,455 905 14.02% 6.67 967.77
45 Ewa Villages CDP Honolulu 7,356 6,108 1,248 20.43% 1.13 5,405.31
46 Napili-Honokowai CDP Maui 6,723 7,261 -538 -7.41% 2.64 2,750.38
47 Makawao CDP Maui 6,523 7,184 -661 -9.20% 3.47 2,070.32
48 Waikoloa Village CDP Hawaii 6,350 6,362 -12 -0.19% 17.83 356.81
49 Waimanalo CDP Honolulu 6,164 5,451 713 13.08% 4.35 1,253.10
50 Pupukea CDP Honolulu 5,705 4,551 1,154 25.36% 3.44 1,322.97
51 Wailea CDP Maui 5,656 5,938 -282 -4.75% 7.44 798.12
52 Wailua Homesteads CDP Kauai 5,645 5,188 457 8.81% 7.3 710.68
53 Laie CDP Honolulu 5,644 6,138 -494 -8.05% 1.34 4,580.60
54 West Loch Estate CDP Honolulu 5,364 5,485 -121 -2.21% 0.62 8,846.77
55 Waipio Acres CDP Honolulu 4,961 5,236 -275 -5.25% 1 5,236.00
56 Hanamaulu CDP Kauai 4,946 3,835 1,111 28.97% 1.27 3,019.69
57 Whitmore Village CDP Honolulu 4,919 4,499 420 9.34% 0.91 4,943.96
58 Captain Cook CDP Hawaii 4,594 3,429 1,165 33.97% 12.86 266.64
59 Kahaluu CDP Honolulu 4,565 4,738 -173 -3.65% 3.48 1,361.49
60 Heeia CDP Honolulu 4,481 4,963 -482 -9.71% 3.09 1,606.15
61 Hawaiian Beaches CDP Hawaii 4,453 4,280 173 4.04% 24.54 174.41
62 Kalaheo CDP Kauai 4,358 4,595 -237 -5.16% 3.5 1,312.86
63 Hawaiian Ocean View CDP Hawaii 4,276 4,437 -161 -3.63% 36.79 120.6
64 Waimanalo Beach CDP Honolulu 4,255 4,481 -226 -5.04% 1.97 2,274.62
65 Iroquois Point CDP Honolulu 3,935 3,374 561 16.63% 0.56 6,025.00
66 Kahaluu-Keauhou CDP Hawaii 3,783 3,549 234 6.59% 5.6 633.75
67 Hauula CDP Honolulu 3,755 4,148 -393 -9.47% 1.15 3,606.96
68 Waialua CDP Honolulu 3,690 3,860 -170 -4.40% 2.19 1,762.56
69 Ainaloa CDP Hawaii 3,596 2,965 631 21.28% 1.97 1,505.08
70 Haleiwa CDP Honolulu 3,576 3,970 -394 -9.92% 2.28 1,741.23
71 Waikapu CDP Maui 3,561 2,965 596 20.10% 11.04 268.57
72 Kaunakakai CDP Maui 3,544 3,425 119 3.47% 12.83 266.95
73 Lanai City CDP Maui 3,519 3,102 417 13.44% 6.92 448.27
74 Puhi CDP Kauai 3,435 2,906 529 18.20% 0.89 3,265.17
75 Orchidlands Estates CDP Hawaii 3,305 2,815 490 17.41% 9.7 290.21
76 Kilauea CDP Kauai 3,208 2,803 405 14.45% 4.95 566.26
77 Mountain View CDP Hawaii 3,088 3,924 -836 -21.30% 55.76 70.37
78 Kekaha CDP Kauai 2,915 3,537 -622 -17.59% 1 3,537.00
79 Honaunau-Napoopoo CDP Hawaii 2,813 2,567 246 9.58% 37.99 67.57
80 Wheeler AFB CDP Honolulu 2,712 1,634 1,078 65.97% 2.31 707.36
81 Hanapepe CDP Kauai 2,630 2,638 -8 -0.30% 0.92 2,867.39
82 Koloa CDP Kauai 2,623 2,144 479 22.34% 1.25 1,715.20
83 Eleele CDP Kauai 2,604 2,390 214 8.95% 0.78 3,064.10
84 Wailua CDP Kauai 2,584 2,254 330 14.64% 1.47 1,533.33
85 Honalo CDP Hawaii 2,571 2,423 148 6.11% 29.58 81.91
86 Paia CDP Maui 2,561 2,668 -107 -4.01% 6.13 435.24
87 Hawaiian Acres CDP Hawaii 2,516 2,700 -184 -6.81% 19.43 138.96
88 Kahuku CDP Honolulu 2,513 2,614 -101 -3.86% 0.96 2,722.92
89 Volcano CDP Hawaii 2,430 2,575 -145 -5.63% 58.56 43.97
90 Keaau CDP Hawaii 2,415 2,253 162 7.19% 2.57 876.65
91 Princeville CDP Kauai 2,400 2,158 242 11.21% 2.39 902.93
92 Honokaa CDP Hawaii 2,359 2,258 101 4.47% 1.27 1,777.95
93 Lawai CDP Kauai 2,253 2,363 -110 -4.66% 4.06 582.02
94 Maunawili CDP Honolulu 2,149 2,040 109 5.34% 1.84 1,108.70
95 Kualapuu CDP Maui 1,998 2,027 -29 -1.43% 29.35 69.06
96 Anahola CDP Kauai 1,951 2,223 -272 -12.24% 3.63 612.4
97 Keokea CDP Maui 1,951 1,612 339 21.03% 18.35 87.85
98 Kealakekua CDP Hawaii 1,894 2,019 -125 -6.19% 7.23 279.25
99 Ko Olina CDP Honolulu 1,872 1,799 73 4.06% 1.08 1,665.74
100 Kapaau CDP Hawaii 1,851 1,734 117 6.75% 2.87 604.18
101 Nanawale Estates CDP Hawaii 1,714 1,426 288 20.20% 2.19 651.14
102 Waimea CDP Kauai 1,690 1,855 -165 -8.89% 1.84 1,008.15
103 Pepeekeo CDP Hawaii 1,681 1,789 -108 -6.04% 1.19 1,503.36
104 Mokuleia CDP Honolulu 1,653 1,811 -158 -8.72% 1.46 1,240.41
105 Leilani Estates CDP Hawaii 1,557 1,560 -3 -0.19% 4.03 387.1
106 Fern Acres CDP Hawaii 1,426 1,504 -78 -5.19% 6.81 220.85
107 Pahala CDP Hawaii 1,405 1,356 49 3.61% 0.84 1,614.29
108 Wainaku CDP Hawaii 1,388 1,224 164 13.40% 1.32 927.27
109 Hawi CDP Hawaii 1,345 1,081 264 24.42% 1.18 916.1
110 Makaha Valley CDP Honolulu 1,284 1,341 -57 -4.25% 4.13 324.7
111 Omao CDP Kauai 1,270 1,301 -31 -2.38% 1.27 1,024.41
112 Hana CDP Maui 1,258 1,235 23 1.86% 10.56 116.95
113 Papaikou CDP Hawaii 1,234 1,314 -80 -6.09% 1.44 912.5
114 Kaanapali CDP Maui 1,202 1,045 157 15.02% 4.95 211.11
115 Haliimaile CDP Maui 1,190 964 226 23.44% 3.46 278.61
116 Olinda CDP Maui 1,161 1,084 77 7.10% 7.49 144.73
117 Kaaawa CDP Honolulu 1,139 1,379 -240 -17.40% 0.8 1,723.75
118 Discovery Harbour CDP Hawaii 1,107 949 158 16.65% 3.56 266.57
119 Kurtistown CDP Hawaii 1,070 1,298 -228 -17.57% 5.95 218.15
120 Punaluu CDP Honolulu 1,064 1,164 -100 -8.59% 1.6 727.5
121 Poipu CDP Kauai 1,042 979 63 6.44% 2.57 380.93
122 Mahinahina CDP Maui 1,016 880 136 15.45% 6.7 131.34
123 Kaumakani CDP Kauai 940 749 191 25.50% 0.95 788.42
124 Naalehu CDP Hawaii 847 866 -19 -2.19% 2.17 399.08
125 Pahoa CDP Hawaii 826 945 -119 -12.59% 2.19 431.51
126 Waikane CDP Honolulu 771 778 -7 -0.90% 6.8 114.41
127 Puako CDP Hawaii 741 772 -31 -4.02% 10.31 74.88
128 Eden Roc CDP Hawaii 687 942 -255 -27.07% 6.4 147.19
129 Fern Forest CDP Hawaii 669 931 -262 -28.14% 12.47 74.66
130 Paauilo CDP Hawaii 633 595 38 6.39% 1.04 572.12
131 Laupahoehoe CDP Hawaii 533 581 -48 -8.26% 2.12 274.06
132 Halaula CDP Hawaii 530 469 61 13.01% 2.65 176.98
133 Paukaa CDP Hawaii 520 425 95 22.35% 0.43 988.37
134 Launiupoko CDP Maui 505 588 -83 -14.12% 5.33 110.32
135 Kukuihaele CDP Hawaii 436 336 100 29.76% 1.71 196.49
136 Maunaloa CDP Maui 431 376 55 14.63% 0.72 522.22
137 Ualapu'e CDP Maui 372 425 -53 -12.47% 3.17 134.07
138 Honomu CDP Hawaii 364 509 -145 -28.49% 0.47 1,082.98
139 Kapalua CDP Maui 322 353 -31 -8.78% 4.8 73.54
140 Pakala Village CDP Kauai 317 294 23 7.82% 2.4 122.5
141 Maalaea CDP Maui 298 352 -54 -15.34% 5.44 64.71
142 Haena CDP Kauai 280 431 -151 -35.03% 1.45 297.24
143 Kalihiwai CDP Kauai 271 428 -157 -36.68% 2.65 161.51
144 Kawela Bay CDP Honolulu 248 330 -82 -24.85% 0.58 568.97
145 Hanalei CDP Kauai 210 450 -240 -53.33% 0.65 692.31
146 Wainiha CDP Kauai 168 318 -150 -47.17% 2.4 132.5
147 Makena CDP Maui 132 99 33 33.33% 9.47 10.45
148 Waiohinu CDP Hawaii 112 213 -101 -47.42% 1.37 155.47
149 Olowalu CDP Maui 92 80 12 15.00% 2.94 27.21
150 Manele CDP Maui 20 29 -9 -31.03% 1.23 23.58
151 Kalaeloa CDP Honolulu 9 48 -39 -81.25% 0.26 184.62

Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2016
Source: U.S. Census Bureau, Population Division
Release Date: May 2017.

Hawaii Mortgage Types

Fixed Rate Mortgages

Just as its name suggests, the rate of interest for this type of mortgage remains fixed throughout the loan period. The loan period varies with the type of loan taken by the client. There are 10 year fixed mortgages, 15 year, 20 year, 25 year, 30 year and so on. The major advantage of this kind of loan is that it is predictable. The monthly payment remains the same though the interest rate to be paid will be bit high compared to the adjustable mortgage type. It is not subject to market fluctuations and this makes the loan taker live without any worries. Some people prefer the security of a fixed rate mortgage when compared to the ARMs. Select this kind of mortgage if you believe that you are going to stay in that house during the entire period of loan and if your financial condition is going to be stable.

As of 2017 most of Hawaii has a conforming loan limit of $636,150 for one-unit properties. Here are loan limits for metro areas across the state.

County Metropolitan Designation 1 Unit Limit 2 Unit Limit 3 Unit Limit 4 Unit Limit
Hawaii Hilo, Hi $636,150 $814,500 $984,525 $1,223,475
Honolulu Urban Honolulu, Hi $721,050 $923,050 $1,115,800 $1,386,650
Kalawao Kahului-Wailuku-Lahaina, Hi $657,800 $842,100 $1,017,900 $1,265,000
Kauai Kapaa, Hi $713,000 $912,750 $1,103,350 $1,371,150
Maui Kahului-Wailuku-Lahaina, Hi $657,800 $842,100 $1,017,900 $1,265,000

Adjustable Rate Mortgage (ARM)

With Adjustable Mortgage Rates, you can afford a bigger mortgage. If you are planning to sell off the house in 5-6 years, you can take the ARM. Even though the client gets a lower interest rate initially the market fluctuations can drastically have an effect on the interest rate to be paid in the coming years. If the rates happen to fall, you don't have to refinance the loan to make your payments also come down. This change will bring about a corresponding change in the monthly payments too. Suppose you have an ARM for $ 150,000 that is annually adjusted. The interest rate starting at 5.75% may rise to 6%. This steady rise may bring about an interest rate of 11.75% at the end of 4 years. You would have to raise your payment by $639.00 (from $875.00 to $ 1,514.00). For example, an annually adjusted ARM for $150,000 may start at 5.75%, but a 6% cap could allow it to go to 11.75% within four years. This would raise the payment from $875.00 to $1,514.00, an increase of $639.00.

The popular ARM types are 10/1 ARM, 7/1 ARM, 5/1 ARM, 3/1 ARM. The first figure that you see represents the initial period of the loan. Your interest rate will remain the same as when you took the loan. The second figure shows the adjustment period, showing how often adjustments can be made once the initial period is over. The most common ARM used is the Fully Amortizing ARM.

Does Hawaii Provide A Non Recourse Loan?

The two basic types of home loans are the recourse loan and the non recourse loan. Both provide their own advantages and challenges to their creditor and debtor. In the recourse loan the creditor is allowed to come to the debtor in the event of default. Suppose the bank is your creditor, they can take action to make you pay the amount. They can even go to court against you and maybe even seize your property. The advantage that a recourse loan has over a non-recourse loan is that in the recourse loan, the monthly payment is much less. Even though it is possible to get an unsecured loan, you will have to convince the bankers of a good credit score and proof that you will indeed pay back the loan.

In Hawaii you get only non-recourse loans. With non-recourse loans, it’s an entirely different story. With this type of loan, you can default on the loan without running, scared that your creditors will come after you. The creditors usually have some collateral to support them when the loan goes into default. They can go after that particular asset and employ any decent means to get their hands on their investment. Thankfully, they cannot come and ask you for the money personally.

Non-recourse loans are the most common loan when you take a mortgage. If due to some reason you are not able to make your house payments, your mortgage will be set to default. Then comes the foreclosure process, this is when your house is put up for auction and sold. Your house will be gone, but at least they cannot go after any of your other assets and take them away from you.

Natural Disasters

Hawaii does not have an elevated risk of wildfires, hail or tornadoes but it has a number of risks associated with being on a rock formation in the Pacific Ocean, far way from other land. These risks include:

  • Tsunamis: about once a year ripples from a minor tsunami strike the islands. More significant ones which can cause major property damage strike about once every 7 years. On April 1, 1946 a large tsunami struck the big island. The surge was 55 feet high & some waves reached over a half-mile inland.
  • Hurricanes: hurricanes have struck the islands in 1982 & 1992. The 1982 hurricane was only a Category 1 storm. It hit Kua, Niihau & Oahu. The 1992 storm - Iniki - was a Category 4 which struck Kauai, causing about $2 billion in damages. Hurricanes can also cause significant local flooding damage. Hurricanes are less common than some might expect, as only 5 tropical storms or hurricanes have managed to cause major damages to the islands since 1950. Most hurricanes approach Hawaii from the east & there is a shear line east of the Big Island. Near the islands upper atmosphere winds flow counter to the trade winds, which weakens approaching hurricanes.
  • Landslides: significant rains can cause rocks to work loose from the mountains across the state. These rocks can fall with high energy, crushing anything in their path.
  • Valcano erruptions: Lava flows at 2000 degrees Fahrenheit, allowing it to easily destroy anything in its path. The islands have multiple active volcanoes which have destroyed hundreds of homes. Surface fumes associated with vog (short for volcanic fog) may cause issues for people with asthma. The Hawaiian Volcano Observatory offers information about active volcanoes across the state.
  • Earthquakes: Thousands of minor earthquakes which are too small to be felt happen each year. They are driven by the active volcanoes across the islands. Tectonic earthquakes of signficantly higher magnitudes are far less common, with notable ones causing major damages happening on April 2, 1868 & October 15, 2006. Standard rental and homeowner insurance policies typically do not cover earthquake damage, though they usually cover losses caused by fires which resulted from an earthquake. You can supplement your homeowner's insurance with an earthquake policy.

Flood Insurance

Standard haomeowner's insurance policies typically do not cover damages due to earthquakes or flooding.

Flash floods are not uncommon. In 2008 heavy rains on the Big Island caused flooding which damaged many homes in Waiakea Uke.

When King Tide coincides with high surf many areas which are normally free from flooding can quickly become covered in a foot or more of water.

Home buyers with mortgages in high-risk areas are required to buy flood insurance. Most flood insurance policies are sold by the United States federal government through The National Flood Insurance Program. Under-priced flood insurance in high-risk areas act as a subsidy to wealthy homeowners.

The NFIP does not charge nearly enough to cover the expected costs of its liabilities. The assessments are not sufficient to build any buffer to cover an extraordinary year, such as what occurred with Hurricane Katrina in 2005 or Hurricane Sandy in 2012. Because homeowners don€™t incur the full cost of building in a flood zone we end up with more houses there than if homeowners incurred the full cost of the flood risk, which exacerbates the government€™s costs in the next disaster.

Typically, homes built after 2002, when building code regulations tightened, are subject to lower insurance rates than older homes. On the other hand, homes without hurricane straps, with roofs that do not meet current standards for wind, with older plumbing or with outdated electrical systems may be difficult €“ or very expensive €“ to insure.

Homeowners who live in lower risk areas & are not required to purchase flood insurance heavily cross-subsidize homeowners who are in areas where floods are more common.

Hawaii Foreclosure Laws

Foreclosure is any debtor's nightmare. It’s a process by which the debtor loses the house to the creditor in the case of a defaulted loan. The creditor then proceeds to recover the amount by taking ownership of the property and trying to sell it on the open market. The debtor can sell off the house during the pre-closure period and pay off the loan. This move can be advantageous to the debtor's credit history because having a foreclosure is definitely a black mark. In Hawaii, the creditors use both judicial foreclosures and non-judicial foreclosures for mortgages in default and the debtors do not have the right of redemption. The time line for a judicial foreclosure is 11 months and for a non-judicial foreclosure it is six months. The out of court foreclosure or court foreclosure depends on what is written in the sales clause contained in the mortgage. The procedure of the time, place and date of sale will be followed according to the contents of the sales clause in the deed of trust.

Hawaiian Property Deeds

This is a formal document that is made out by both the creditor and the debtor at the time of the real estate transaction. It contains the name of the buyer and the name of the person who sells it and the legal description of the property. This written document should be notarized. There are three types of deeds used in real estate transactions in Hawaii. Those are the Quitclaim Deed, the Grant Deed and the Warranty/Non Warranty Deeds. In the deeds, the terms Grantor and grantee are used to signify the lender and the debtor. Through the quitclaim deed, the transaction is done when the ownership interest and the title are transferred from one person to the other without any limits. There are no warranties or guarantees that the title is free of claims or liens. This is usually done in the case of divorcing couples when one party signs off to the other. In the grant deed, the ownership is transferred, but the title is retained unless specifically mentioned. In the warranty/non warranty Deed there are several other types that claim that the title is good, free of any claims or leins and is the most common form of transfer.

Waikiki Beach, Honolulu.