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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 lists the 2010 Census Designated Places across the state. Urban Honolulu population increased to 351,792 in 2016, but other places did not have data available for 2016. As of 2016 the population density for Urban Honolulu is 5,812.82 people per mi².

Rank Geography County 2010 Pop Land mi² Pop Den mi²
1 Urban Honolulu CDP Honolulu 337,256 60.52 5,572.64
2 East Honolulu CDP Honolulu 49,914 23.01 2,169.23
3 Pearl City CDP Honolulu 47,698 9.11 5,235.78
4 Hilo CDP Hawaii 43,263 53.39 810.32
5 Kailua CDP (Honolulu County) Honolulu 38,635 7.76 4,978.74
6 Waipahu CDP Honolulu 38,216 2.8 13,648.57
7 Kaneohe CDP Honolulu 34,597 6.53 5,298.16
8 Mililani CDP Honolulu 27,629 4.01 6,890.02
9 Kahului CDP Maui 26,337 14.45 1,822.63
10 Ewa Gentry CDP Honolulu 22,690 2.18 10,408.26
11 Mililani Mauka CDP Honolulu 21,039 3.98 5,286.18
12 Kihei CDP Maui 20,881 9.28 2,250.11
13 Makakilo CDP Honolulu 18,248 3.82 4,776.96
14 Wahiawa CDP Honolulu 17,821 2.07 8,609.18
15 Schofield Barracks CDP Honolulu 16,370 2.77 5,909.75
16 Wailuku CDP Maui 15,313 5.32 2,878.38
17 Kapolei CDP Honolulu 15,186 4.14 3,668.12
18 Ewa Beach CDP Honolulu 14,955 1.21 12,359.50
19 Royal Kunia CDP Honolulu 14,525 3.02 4,809.60
20 Halawa CDP Honolulu 14,014 2.37 5,913.08
21 Waimalu CDP Honolulu 13,730 1.83 7,502.73
22 Waianae CDP Honolulu 13,177 5.36 2,458.40
23 Nanakuli CDP Honolulu 12,666 2.99 4,236.12
24 Kailua CDP (Hawaii County) Hawaii 11,975 35.63 336.09
25 Lahaina CDP Maui 11,704 7.78 1,504.37
26 Waipio CDP Honolulu 11,674 1.25 9,339.20
27 Hawaiian Paradise Park CDP Hawaii 11,404 15.21 749.77
28 Kapaa CDP Kauai 10,699 10.01 1,068.83
29 Kalaoa CDP Hawaii 9,644 39.17 246.21
30 Kaneohe Station CDP Honolulu 9,517 4.38 2,172.83
31 Maili CDP Honolulu 9,488 1.72 5,516.28
32 Aiea CDP Honolulu 9,338 1.66 5,625.30
33 Waimea CDP (Hawaii County) Hawaii 9,212 39.29 234.46
34 Waihee-Waiehu CDP Maui 8,841 4.11 2,151.09
35 Ahuimanu CDP Honolulu 8,810 2.69 3,275.09
36 Holualoa CDP Hawaii 8,538 13.2 646.82
37 Ocean Pointe CDP Honolulu 8,361 2.03 4,118.72
38 Makaha CDP Honolulu 8,278 2.43 3,406.58
39 Haiku-Pauwela CDP Maui 8,118 15.78 514.45
40 Pukalani CDP Maui 7,574 4.28 1,769.63
41 Waikele CDP Honolulu 7,479 1.1 6,799.09
42 Napili-Honokowai CDP Maui 7,261 2.64 2,750.38
43 Makawao CDP Maui 7,184 3.47 2,070.32
44 Hickam Housing CDP Honolulu 6,920 4.59 1,507.63
45 Lihue CDP Kauai 6,455 6.67 967.77
46 Kula CDP Maui 6,452 34.61 186.42
47 Waikoloa Village CDP Hawaii 6,362 17.83 356.81
48 Laie CDP Honolulu 6,138 1.34 4,580.60
49 Ewa Villages CDP Honolulu 6,108 1.13 5,405.31
50 Wailea CDP Maui 5,938 7.44 798.12
51 West Loch Estate CDP Honolulu 5,485 0.62 8,846.77
52 Waimanalo CDP Honolulu 5,451 4.35 1,253.10
53 Waipio Acres CDP Honolulu 5,236 1 5,236.00
54 Wailua Homesteads CDP Kauai 5,188 7.3 710.68
55 Heeia CDP Honolulu 4,963 3.09 1,606.15
56 Kahaluu CDP Honolulu 4,738 3.48 1,361.49
57 Kalaheo CDP Kauai 4,595 3.5 1,312.86
58 Pupukea CDP Honolulu 4,551 3.44 1,322.97
59 Whitmore Village CDP Honolulu 4,499 0.91 4,943.96
60 Waimanalo Beach CDP Honolulu 4,481 1.97 2,274.62
61 Hawaiian Ocean View CDP Hawaii 4,437 36.79 120.60
62 Hawaiian Beaches CDP Hawaii 4,280 24.54 174.41
63 Hauula CDP Honolulu 4,148 1.15 3,606.96
64 Haleiwa CDP Honolulu 3,970 2.28 1,741.23
65 Mountain View CDP Hawaii 3,924 55.76 70.37
66 Waialua CDP Honolulu 3,860 2.19 1,762.56
67 Hanamaulu CDP Kauai 3,835 1.27 3,019.69
68 Kahaluu-Keauhou CDP Hawaii 3,549 5.6 633.75
69 Kekaha CDP Kauai 3,537 1 3,537.00
70 Captain Cook CDP Hawaii 3,429 12.86 266.64
71 Kaunakakai CDP Maui 3,425 12.83 266.95
72 Iroquois Point CDP Honolulu 3,374 0.56 6,025.00
73 Lanai City CDP Maui 3,102 6.92 448.27
74 Ainaloa CDP Hawaii 2,965 1.97 1,505.08
75 Waikapu CDP Maui 2,965 11.04 268.57
76 Puhi CDP Kauai 2,906 0.89 3,265.17
77 Orchidlands Estates CDP Hawaii 2,815 9.7 290.21
78 Kilauea CDP Kauai 2,803 4.95 566.26
79 Hawaiian Acres CDP Hawaii 2,700 19.43 138.96
80 Paia CDP Maui 2,668 6.13 435.24
81 Hanapepe CDP Kauai 2,638 0.92 2,867.39
82 Kahuku CDP Honolulu 2,614 0.96 2,722.92
83 Volcano CDP Hawaii 2,575 58.56 43.97
84 Honaunau-Napoopoo CDP Hawaii 2,567 37.99 67.57
85 Honalo CDP Hawaii 2,423 29.58 81.91
86 Eleele CDP Kauai 2,390 0.78 3,064.10
87 Lawai CDP Kauai 2,363 4.06 582.02
88 Honokaa CDP Hawaii 2,258 1.27 1,777.95
89 Wailua CDP Kauai 2,254 1.47 1,533.33
90 Keaau CDP Hawaii 2,253 2.57 876.65
91 Anahola CDP Kauai 2,223 3.63 612.40
92 Princeville CDP Kauai 2,158 2.39 902.93
93 Koloa CDP Kauai 2,144 1.25 1,715.20
94 Maunawili CDP Honolulu 2,040 1.84 1,108.70
95 Kualapuu CDP Maui 2,027 29.35 69.06
96 Kealakekua CDP Hawaii 2,019 7.23 279.25
97 Waimea CDP (Kauai County) Kauai 1,855 1.84 1,008.15
98 Mokuleia CDP Honolulu 1,811 1.46 1,240.41
99 Ko Olina CDP Honolulu 1,799 1.08 1,665.74
100 Pepeekeo CDP Hawaii 1,789 1.19 1,503.36
101 Kapaau CDP Hawaii 1,734 2.87 604.18
102 Wheeler AFB CDP Honolulu 1,634 2.31 707.36
103 Keokea CDP Maui 1,612 18.35 87.85
104 Leilani Estates CDP Hawaii 1,560 4.03 387.10
105 Fern Acres CDP Hawaii 1,504 6.81 220.85
106 Nanawale Estates CDP Hawaii 1,426 2.19 651.14
107 Kaaawa CDP Honolulu 1,379 0.8 1,723.75
108 Pahala CDP Hawaii 1,356 0.84 1,614.29
109 Makaha Valley CDP Honolulu 1,341 4.13 324.70
110 Papaikou CDP Hawaii 1,314 1.44 912.50
111 Omao CDP Kauai 1,301 1.27 1,024.41
112 Kurtistown CDP Hawaii 1,298 5.95 218.15
113 Hana CDP Maui 1,235 10.56 116.95
114 Wainaku CDP Hawaii 1,224 1.32 927.27
115 Punaluu CDP Honolulu 1,164 1.6 727.50
116 Olinda CDP Maui 1,084 7.49 144.73
117 Hawi CDP Hawaii 1,081 1.18 916.10
118 Kaanapali CDP Maui 1,045 4.95 211.11
119 Poipu CDP Kauai 979 2.57 380.93
120 Haliimaile CDP Maui 964 3.46 278.61
121 Discovery Harbour CDP Hawaii 949 3.56 266.57
122 Pahoa CDP Hawaii 945 2.19 431.51
123 Eden Roc CDP Hawaii 942 6.4 147.19
124 Fern Forest CDP Hawaii 931 12.47 74.66
125 Mahinahina CDP Maui 880 6.7 131.34
126 Naalehu CDP Hawaii 866 2.17 399.08
127 Waikane CDP Honolulu 778 6.8 114.41
128 Puako CDP Hawaii 772 10.31 74.88
129 Kaumakani CDP Kauai 749 0.95 788.42
130 Paauilo CDP Hawaii 595 1.04 572.12
131 Launiupoko CDP Maui 588 5.33 110.32
132 Laupahoehoe CDP Hawaii 581 2.12 274.06
133 Honomu CDP Hawaii 509 0.47 1,082.98
134 Halaula CDP Hawaii 469 2.65 176.98
135 Hanalei CDP Kauai 450 0.65 692.31
136 Haena CDP Kauai 431 1.45 297.24
137 Kalihiwai CDP Kauai 428 2.65 161.51
138 Paukaa CDP Hawaii 425 0.43 988.37
139 Ualapu'e CDP Maui 425 3.17 134.07
140 Maunaloa CDP Maui 376 0.72 522.22
141 Kapalua CDP Maui 353 4.8 73.54
142 Maalaea CDP Maui 352 5.44 64.71
143 Kukuihaele CDP Hawaii 336 1.71 196.49
144 Kawela Bay CDP Honolulu 330 0.58 568.97
145 Wainiha CDP Kauai 318 2.4 132.50
146 Pakala Village CDP Kauai 294 2.4 122.50
147 Waiohinu CDP Hawaii 213 1.37 155.47
148 Makena CDP Maui 99 9.47 10.45
149 Olowalu CDP Maui 80 2.94 27.21
150 Kalaeloa CDP Honolulu 48 0.26 184.62
151 Manele CDP Maui 29 1.23 23.58

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.

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.