Owning a home is still a significant part of the American dream. It means security, control, and stability for many homebuyers. As the top 2016 Residential Lender—in number of loans and dollars—Bank of Hawaii is committed to helping that dream come true for our local families.
From now through August 31, 2017, Bank of Hawaii is offering 70,000 HawaiianMiles to your clients who obtain a new Bank of Hawaii home purchase mortgage loan. As long as they submit their loan applications prior to August 31, and close at Bank of Hawaii within 12 months of their application date, they will also be the proud owners of 70,000 HawaiianMiles — more than a domestic roundtrip ticket!
Buying a home is a big decision—you alleviate their fears, understand their needs, and look out for their best financial interest. And after all that decision making, your clients will need a relaxing trip somewhere—70,000 HawaiianMiles might just do the trick!
*Limited-time offer valid until August 31, 2017. To find out more, visit www.boh.com/mortgages or call 1-877-616-2636.
Buyers may receive a half point off their closing fees when financing their purchase through Central Pacific Bank. Offer is available for owner occupant, second home, and investment property purchases. First time home buyers may be eligible for an additional quarter point off if they are purchasing an owner occupant property using a conforming, FHA, VA, or USDA loan product.
Please call 808-356-4000 or contact your Central Pacific Bank Mortgage Loan Officer for more details. Visit www.centralpacificbank.com/homeloans for more home loan options.
* Additional terms and restrictions may apply. Not valid with any other offer. Offer may be discontinued at anytime. Offer of credit subject to application and credit approval. Equal Housing Lender.
By Mark James, Residential Loan Team Leader, American Savings Bank
www.ASBHawaii.com, Equal Housing Lender, Member FDIC
A “piggyback mortgage” is a type of loan structure where a second mortgage – typically a Home Equity Line of Credit (HELOC) – is combined with a first mortgage to finance or refinance a home.
Piggyback mortgages frequently eliminate the need for private mortgage insurance (PMI). For example, if the purchase price of a property is $750,000 and the buyer has a 10% down payment ($75,000), a first mortgage structure would be for $675,000. This 90% loan-to-value (LTV) financing would require PMI.
However, if the loan is greater than the conforming loan limit ($636,150), it may not be eligible for PMI depending on loan size. Therefore, a piggyback mortgage could be structured with a first mortgage at 80% LTV ($600,000) and a second mortgage HELOC for $75,000, eliminating the need for PMI.
Piggyback mortgages allow borrowers to have a first mortgage payment with monthly principal and interest payments, and a second HELOC or loan payment of either principal and/or interest.
At American Savings Bank, piggyback mortgages are either an interest-only payment as a HELOC with a variable rate or a fixed-rate equity loan option from the HELOC resulting in a fixed loan payment with monthly principal and interest. The borrower’s total monthly expense includes property tax, hazard insurance and other impound amounts.
By Clint Hamabata, Condo and Project Manager, American Savings Bank
www.ASBHawaii.com, Equal Housing Lender, Member FDIC
You may have noticed that community real estate developments and new condominium projects are on the rise, especially in West O‘ahu and Kaka‘ako. Mortgage financing for such projects is a specialty for lenders with expertise in both portfolio lending and new project financing.
New projects may not be FNMA or FHLMC eligible, which is why it’s important to work with lenders that have portfolio capability like American Savings Bank. Besides the owner-occupancy ratio, there are various reasons why a project may not meet FNMA/FHLMC guidelines. Given this, developers usually work closely with their lead lenders to get projects approved.
A participating lender is one that works closely with the developer to prequalify prospective buyers before the project starts. There may be more than one participating lender on a project.
When the construction schedule is near completion, buyers must line up financing. The prospective buyer doesn’t need to use the participating lender to line up mortgage financing. However, the advantage of using a participating lender is that they may offer long-term rate locks for up to 12 months before the project’s completion.
Following the rate lock, lenders may offer a float down option, allowing locked borrowers to take advantage of a lower rate near closing.
