For those homeowners with significant equity in their homes now is an excellent time for a Home Equity Line of Credit (HELOC). The Fed is keeping rates low now but has indicated we could see them rise in 2022 or 2023. 

At American Savings Bank we have recently reduced home equity rates to our all-time lows. And our lines of credit are available up to $400,000 with no closing costs or appraisal required. Homeowners stand to benefit by adding a HELOC behind their existing first mortgage, to allow access to funds as needed, or they may even pay off their first mortgage entirely with the HELOC as a low-interest replacement. 

Our loan officers may advise a refinancing of the existing first mortgage with a new mortgage, in conjunction with a new HELOC, depending on a number of factors. Recently, the Federal Housing Finance Agency (FHFA) took steps to reduce the costs of refinancing by removing the “Adverse Market Refinance Fee” that they imposed earlier in the pandemic, thus instantly making refinancing more affordable.

For more information please contact one of our helpful loan officers here or apply directly online.

At American Savings Bank we make it our mission to offer the most aggressive jumbo loan options in Hawaii. Throughout the year we have increased our loan limits, while maintaining low pricing and timely turn times for purchase transactions. And we allow as little as 10% down for multi-million dollar purchases which is very unusual in the industry.

What exactly are jumbo loans?

You may know that Fannie Mae and Freddie Mac adjust the county loan limits each year. At the beginning of 2021 the new limit for all Hawaii counties was bumped to $822,375 for one-unit properties. While that’s the highest limit on record, the need for larger loans is more common than ever as pricing pressures are not going away. 

The median price for a single-family home is nearing $1 million on Oahu with many neighborhoods well in excess of that figure. Maui and Kauai counties are already well into seven digits. Today’s buyers need creative options to minimize down payments on these properties and to keep the monthly payments as low as possible with low fixed rate and adjustable rate programs.

What are the sources for Jumbo loans?

It’s important to recognize that the local depository banks and credit unions are the primary options for loans exceeding $822,375, also known as “Portfolio” or “Non-Saleable” loans. That’s because mortgage brokers and mortgage banks, without a customer deposit base to fund jumbo loans that cannot be sold to Fannie or Freddie, typically broker them to the banks and credit unions. Going directly to the bank or credit union source is highly beneficial versus brokering with faster turn times and direct access to the decision makers.

For our latest jumbo loan updates please contact one of our helpful loan officers: www.asbhawaii.com/personal/mortgage-loan-officers

Every REALTOR® knows that to succeed in today’s real estate business you need the best of both worlds: the best relationship skills that help you build trust and loyalty and the best technology that gives buyers the tools to search homes and prices right from their smartphones. With SimpliFi Mortgage by Bank of Hawaii℠, we’re bringing the best of both worlds to the mortgage process too. SimpliFi Mortgage lets people apply for any mortgage or home loan product the way they want: entirely online, online with a Loan Officer of their choice, or work directly with a Loan Officer from Hawaii’s #1 residential lender* team. Because just like you, at Bank of Hawaii we know that today’s home buyers demand the best of everything: the fastest, easiest to use technology and experienced professionals who will be with them through the entire home buying process. For more information visit boh.com/loanofficers. Member FDIC. Equal Housing Lender.

Disclosure:

*#1 Residential Lender ranking is for total number of residential loans and total dollars made by a lender in the State of Hawaii in 2020. Information compiled by Title Guaranty derived from Hawaii Bureau of Conveyances tax data recorded information for 2020. Information is deemed reliable but not guaranteed.