Compare Current Mortgage Rates in Hawaii

Along with how much you borrow, your mortgage rate determines how much you’ll pay each month. It also affects the total cost you’ll pay to own your home in the long run.

If you’re buying or refinancing a home in the Aloha State, here’s what you should know about Hawaii mortgage rates.

Mortgage rates in Hawaii are determined by the same factors that affect rates in other states, and Hawaii’s rates are comparable to the national average. But since homes in Hawaii are so expensive, even small changes in mortgage rates can have a big impact on affordability.

You can’t control all the factors that determine your mortgage rate. Many have to do with the broader economy and the mortgage industry. Others depend on your personal situation.

For example, when inflation is high, the Federal Reserve will take measures to push interest rates higher and discourage borrowing. When people can’t borrow, they can’t spend as much, which can help reduce inflation.

You have some control over personal factors. Here are some changes you could make to get a better mortgage rate:

• Improve your credit score: Keep your credit utilization low and pay all your bills on time. You can expect the best mortgage rates if your credit score is higher, but even a small boost can help.
• Increase your income: Having a more stable, long-term income relative to your debt can unlock better interest rates and make home ownership more affordable. Lenders like to see a debt-to-income ratio (DTI) of 43% or less but may approve up to 50%.
• Shorten your loan term: If you can afford the monthly payments on a 15-year loan, your interest rate could be 0.5 to 1 percentage point lower.
• Comparison shop: You could lower your mortgage rate by 50 basis points, or 0.5 percentage points, by getting quotes from several mortgage lenders, according to a study of 2021 mortgage data by the Consumer Financial Protection Bureau.

Several programs offer financial assistance to make it easier to become a first-time homeowner in Hawaii: 

HHOC programs

The Hawaii HomeOwnership Center’s (HHOC) mission is to help low- to moderate-income families become first-time homeowners. It’s part of NeighborWorks America, a federally funded nonprofit organization. HHOC is affiliated with a nonprofit mortgage broker, HHOC Mortgage, which offers two types of assistance:

• HHOC Mortgage Down Payment Assistance Loan: This program offers a second mortgage of up to $125,000 with a rate of 4.5% or lower. Your first mortgage must also come from HHOC Mortgage. To qualify, you must be a first-time buyer earning up to 120% of the area median income. You also must complete homebuyer education classes and make a contribution of at least 3% of the home’s purchase price.
• HHOC Mortgage Deferred Closing Costs Assistance Loan: HHOC provides a six-to-one matching contribution toward your closing costs in the form of a no-interest, 15-year loan up to $15,000 with no monthly payments. Your first mortgage must also come from HHOC Mortgage. This program is available to first-time buyers earning up to 120% of the area median income. You must complete homebuyer education classes and contribute toward closing costs. 

Lender programs

• HawaiiUSA Federal Credit Union First-Time Homebuyer Mortgage Program: With this program, your down payment can be as low as 3%. You must have two months of cash reserves to cover principal, interest, taxes, and insurance. Interest rate discounts are available if you complete a homebuyer education program and set up direct deposit and automatic mortgage payments with the credit union.
• American Savings Bank’s “This Is Home” program: This loan program requires a down payment of at least 3%, and your income can’t be higher than 140% of the area median. This is Home offers a discounted interest rate and closing costs.

Regional programs

• Honolulu down payment loan: You can apply for a 20-year, zero-interest loan for up to $40,000 with no fees if your income is below certain limits (for example, $83,600 for a household of two in 2024). You also must complete a homebuyer education course.

Tax programs

• Mortgage credit certificate (MCC): This program provides a federal tax credit of up to 20% of your annual mortgage interest. This lasts for as long as you have the mortgage. You must meet income and loan limits based on county and family size. You can apply when you get your mortgage from a participating lender.

Despite Hawaii’s high home prices, you could become a homeowner with one of these loan types:

Hawaii conventional mortgages

• Description: The most common type of mortgage.
• Down payment: 3%
• Credit score: 620
• 2024 loan limit: $1,149,825

Hawaii HomeReady and Home Possible mortgages

• Description: For first-time homebuyers who want a conventional loan with a smaller down payment.
• Down payment: 3%
• Credit score: 620
• 2024 loan limit: $1,149,825

Hawaii FHA mortgages

• Description: For borrowers with lower credit scores and other credit challenges.
• Down payment: 3.5% if you have fair credit or better, 10% if your credit is poor.
• Credit score: 500
• 2024 loan limit: $517,500 in Hawaii County, up to $1,029,250 in Kauai County.

Hawaii VA mortgages

• Description: For qualifying military service members and their surviving spouses.
• Down payment: 0%
• Credit score: None required by VA, but varies by lender.
• 2024 loan limit: $517,500 in Hawaii County, up to $1,029,250 in Kauai County.

Hawaii USDA guaranteed mortgages

• Description: For rural and lightly populated suburban areas.
• Down payment: 0%
• Credit score: None
• 2024 loan limit: None

Hawaii jumbo mortgages

• Description: Provides financing when conventional conforming loan limits aren't high enough for the property you want.
• Down payment: Varies by lender; typically 20% or more, but some lenders might accept 5%.
• Credit score: Often 680, but can vary by lender.
• 2024 loan limit: Millions — upper limit varies by lender.