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Compare mortgage refinance rates in Hawaii.
Key Points
• Mortgage refinancing can be a smart move to save money by lowering your interest rate or changing your loan term, but it’s important to consider the costs and benefits.
• Mortgage refinance rates in Hawaii are influenced by economic factors like Federal Reserve policy and inflation, but your finances (such as your credit score) matter, too.
• Even a 1% drop in the rate for a $300,000 mortgage could mean roughly $170 more in your pocket each month.
• Hawaii refinance rates can differ by loan type, with FHA and VA loans often offering lower rates compared to conventional loans, making them attractive options for eligible borrowers.
• Ever thought about switching to a 15-year mortgage? It could be a smart move, as it often means paying less interest over time, even if your monthly payments go up.
• Remember, refinancing is a financial strategy that should be approached thoughtfully. Consider the costs vs. the potential savings, and explore alternatives such as a HELOC if it fits your needs.
Introduction to Mortgage Refinance Rates
Mortgage refinancing is like hitting the reset button on your home loan. You’re swapping your current mortgage for a new one, and if you play your cards right, you could snag a better deal — think lower monthly payments or a more favorable interest rate.
This guide is your ticket to understanding how refi rates are determined and how to score the best one out there. Whether you’re in Hawaii or any other state, getting a handle on what’s driving the current mortgage rates will put you in the driver’s seat.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Where Do Mortgage Refi Interest Rates Come From?
Mortgage refinance interest rates are a product of both the economic landscape and your unique financial standing.
Economic factors like Federal Reserve policies, inflation, the bond market, and housing inventory all play a part in the cost of home loans. For instance, high inflation and federal funds rate hikes usually translate to higher mortgage rates. On the flip side, low inflation and a robust bond market can work in your favor. By keeping an eye on these moving parts, you can better predict when the time is right for your refinance. Understanding the local climate for mortgage refinance rates in Hawaii is key to making a savvy move.
Also know that your own personal financial profile will impact your access to refinancing options. Those with higher scores will likely qualify for more favorable interest rates, while those with lower scores will appear less creditworthy to lenders and therefore typically be assessed loftier rates.
How Interest Rates Affect Home Affordability
Interest rates play a significant role in the affordability of your refinance payment. Here’s a closer look: The amount you owe, the time to repay (aka the term of your loan), and the interest rate all come together to determine your monthly payment.
For instance, with a $200,000 loan, a 6.00% interest rate, and a 30-year term, you’re looking at $1,199 a month. But bump that interest rate to 8.00%, and suddenly, you’re paying $1,467 monthly. Over the life of the loan, a lower interest rate could save you close to $100,000. Even a small difference in Hawaii refinance rates can lead to substantial savings.
Also, on the topic on interest rates, it’s smart to focus on the annual percentage rate (APR), because that reflects what you actually pay, including additional fees and charges, to borrow money. The APR can give you a more accurate picture of what you will be spending every month and over the life of the loan.
Why Refinance in Hawaii?
Homeowners refinance for a variety of reasons, each influencing the type of refinance and the interest rate. Here’s a closer look at some specifics, but first, a note. In terms of how soon you can refinance, you can’t necessarily swap out your home loan right away if rates drop. You should have at least 20% equity in your home, especially if you plan to cash out some equity.
Common Reasons to Refinance a Mortgage
Homeowners refinance mortgages for key reasons:
• Lower rates can mean reduced monthly payments and less interest.
• Adjusting your repayment term can help you better manage payments or pay off your loan sooner.
• Refinancing can be a path to accessing home equity for large expenses.
• Switching from an adjustable to a fixed rate may provide financial peace of mind.
• You may be able to eliminate FHA mortgage insurance premiums by refinancing once you have 20% equity.
💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.
How to Get the Best Available Mortgage Refi Interest Rate
If refinancing seems like a wise move, follow this advice to secure the best mortgage refinance rate:
• Build your credit score by paying bills promptly (this is the single biggest factor in determining your score) and sidestepping new debt to keep your credit utilization ratio down.
• Keep your debt-to-income ratio under 36%.
• Compare rates and fees from multiple lenders, including your current financial institution if they offer home loans. You might get a favorable rate since you’re already a client.
• Think about buying discount points (often called mortgage points) to lower your interest rate. Although that means putting down more cash upfront, it can lower your monthly payment and the total overall interest you pay.
• Choose the shortest refi term you can manage to minimize the amount of interest you pay over the life of the loan.
These steps can help you optimize your financial strategy and take advantage of the best Hawaii refinance rates available. Worth noting: While the interest rate is important, make sure you stay tuned into the other fees and costs associated with refinancing. Just as with a primary home loan, mortgage refinancing costs usually involve closing costs to the tune of 2% to 6% of the loan amount.
Understand Trends in Hawaii Mortgage Interest Rates
National mortgage rates have been on a bit of a rollercoaster in recent years, as you will learn about in a moment. The rates in Hawaii tend to mirror these fluctuations. What often makes Hawaii a special case in terms of mortgages isn’t the interest rate on loans, but the fact that Hawaii ranks as one of the most expensive states in the U.S. in terms of property values, with a current median of approximately $947,000. Such elevated prices can push many borrowers into the realm of jumbo loans.
That said, if you’re a homeowner in Hawaii, interest rate trends are something to keep in mind if you’re considering refinancing. Here’s some more detailed intel to consider.
Historical U.S. Mortgage Interest Rates
Mortgage interest rates have seen their share of ups and downs, mirroring the ebb and flow of the economy. In 2021, the average 30-year fixed rate was a modest 3.15%. Fast forward to 2023, and we saw a significant jump to 7.00%. Federal Reserve actions, inflation, and the bond market all play a part in these changes. Moving into early 2025, it’s looking like rates will remain higher for longer, though many had hoped the Fed might cut rates by now.
Below is a graph that gives you an overview of how mortgage rates have varied over the last few decades. By familiarizing yourself with these past trends, you may be better equipped to understand these fluctuations, make decisions about your mortgage, and potentially save money by refinancing when rates are low.
Historical Interest Rates in Hawaii
Hawaii refinance rates tend to follow the national trends, but there can be some differences. Here is a chart summarizing almost two decades’ worth of rates, both in Hawaii and in the U.S. overall, for mortgages. This can provide a closer look at how Hawaii rates typically track; as you’ll see, they are usually slightly lower than the national numbers. (Note that the Federal Housing Finance Agency stopped tracking these numbers in 2018, so the chart ends with that year.)
| Year | Hawaii Rate | National Rate |
|---|---|---|
| 2000 | 7.59 | 8.14 |
| 2001 | 6.81 | 7.03 |
| 2002 | 6.44 | 6.62 |
| 2003 | 5.43 | 5.83 |
| 2004 | 5.40 | 5.95 |
| 2005 | 5.73 | 6.00 |
| 2006 | 6.15 | 6.60 |
| 2007 | 6.01 | 6.44 |
| 2008 | 5.73 | 6.09 |
| 2009 | 4.79 | 5.06 |
| 2010 | 4.83 | 4.84 |
| 2011 | 4.58 | 4.66 |
| 2012 | 3.68 | 3.74 |
| 2013 | 3.80 | 3.92 |
| 2014 | 4.16 | 4.24 |
| 2015 | 3.88 | 3.91 |
| 2016 | 3.73 | 3.72 |
| 2017 | 3.99 | 4.03 |
| 2018 | 4.48 | 4.57 |
Choose the Right Mortgage Refi Type
Next, review the mortgage refinance types that may be available to you. Which one is right for you? That will depend on your financial situation and goals. Do you need to lower your monthly bills ASAP, or is your goal to free up some cash from your home equity, or perhaps shorten your loan term? The answer can play an important role in your choice.
Conventional Refi
A conventional refinance, also known as a rate-and-term refi, involves changing the interest rate or loan term of your mortgage. Conventional refis typically come with higher rates than government-backed loans (FHA, VA, USDA), though those loans have specific qualification requirements.
Conventional refinance loans can be suitable for homeowners who want to lower their interest rate or change their repayment term. To get approved, you generally need a minimum credit score (often 620 or higher), sufficient home equity (typically 20%), and a manageable debt-to-income ratio.
Cash-Out Refi
Cash-out refinances offer a way to tap into your home’s equity and get a new mortgage for more than you currently owe. You can then take the difference in cash. Cash-out refis typically have higher interest rates than traditional refis, but they can be a smart way to get a large sum of money for things like home renovations or paying off high-interest debt. For example, if you have a $500,000 home and a $300,000 mortgage, you have $200,000 in equity, and can typically access up to 80% of that amount.
15-Year Mortgage Refi
Switching from a 30-year to a 15-year mortgage by refinancing could help you pay off your debt that much sooner and save big on interest. Sure, the monthly payments are higher, but the long-term savings are impressive.
Here’s an example:
• A 30-year, $1 million loan at 7.50% APR results in a monthly payment of about $6,992 and a total interest of $1,517,167.
• If you refinanced to a 15-year term at 7.00%, your monthly payment jumps to around $8,988. But the total interest paid plummets to approximately $617,891, saving you nearly $900,000.
When you’re weighing your options for mortgage refinance rates in Hawaii, consider the substantial benefits a 15-year refi can bring.
Adjustable-Rate Mortgage Refi
An adjustable-rate mortgage (ARM) can start with a lower interest rate than a fixed-rate loan, but it’s essential to consider that the rate may increase over time based on market conditions. If you’re planning to move before the rate adjusts, an ARM could be a smart financial move. For example, if you have a 30-year fixed-rate mortgage but anticipate leaving your home within a few years, an ARM could lower your monthly payments and save you money in the short term.
One note of caution: When considering an ARM refi, it’s important to monitor mortgage refinance rates in Hawaii and assess your future plans. You want to make sure that, if you wind up not moving when anticipated, you can afford the higher payments that might be due.
FHA Refi
FHA loans, backed by the Federal Housing Administration, are often associated with lower interest rates, sometimes a full percentage point less than conventional loans. Some FHA refinance options are tailored exclusively for existing FHA loan holders, such as the FHA Simple and Streamline Refinances.
However, alternatives like the FHA cash-out refinance or the FHA 203(k) refinance are designed for home improvements and are available to those without an FHA loan. These options can still provide you with competitive mortgage refinance rates in Hawaii and the flexibility to manage your home equity.
VA Refi
VA loans, backed by the U.S. Department of Veterans Affairs, are known for their low interest rates. To qualify for a VA refinance, technically called an interest rate reduction refinance loan (IRRRL), you must already have a VA loan. (These are available to past and present members of the military, as well as some spouses.) This type of refinance can help you secure a lower rate and reduce your monthly payments, making it a valuable option for veterans and eligible borrowers.
Compare Mortgage Refi Interest Rates
To snag the best possible mortgage refinance rate for your situation, follow this advice:
• Compare offers from multiple lenders. It can be smart to get at least a few and see how rates and terms stack up.
• Look at the annual percentage rate (APR), which encompasses interest rates, fees, and discount points.
• Evaluate the total costs, including closing costs and fees. Really zero in on how much you will need upfront and then how much you will be paying every month.
• If possible, build your credit score which can allow you to qualify for more favorable rates and terms.
• Stay informed about market trends to time your refinance effectively. Plenty of websites offer regularly updated numbers.
• Ensure your refinance aligns with your financial goals, whether it’s lowering your rate, changing your term, or accessing equity. Hawaii refinance rates should be a key factor in your decision, but pick the refi loan that will get you where you want to go in terms of, say, raising cash to start a business or lowering your monthlies so you can afford your new baby’s daycare costs.
Use an Online Refinance Calculator
Online refinance calculators can be a fantastic resource for getting a ballpark figure of what your new monthly payments might look like and for comparing different refinance options. These calculators take into account your current loan balance, the new interest rate, and the term of the loan. By inputting your specific details, you can get a clear picture of your potential savings and the impact of refinancing. For example, you can use a refinance calculator to see how much you could save by refinancing at the current mortgage refinance rates in Hawaii. Using these tools can help make the decision-making process easier and more informed.
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage in Hawaii could be a smart financial move that saves you money or helps you achieve other financial goals. By refinancing, you might be able to snag a lower interest rate, reduce your monthly payment, pay off your loan sooner, or tap into your home equity. But refinancing isn’t free — you’ll need to pay closing costs, and keep an eye on those all-important interest rates to gauge how much you’ll be paying. It’s usually smart to compare offers from a few lenders to find the right fit.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Can I lower my interest rate without refinancing?
Yes, you can lower your interest rate without refinancing by recasting your mortgage. This means you pay a lump sum toward your loan principal, and your lender recalculates and lowers your payments. Another option: If you’re facing financial hardship, you can request a loan modification to change your rate and avoid foreclosure.
Is there a cost to recast your mortgage?
When considering a mortgage recast, it’s smart to factor in any associated fees, although they are typically much more modest compared to refinance fees. Lenders usually charge a fee ranging from $150 to $500 for a mortgage recast, but the exact amount may vary, compared with refi closing costs of 2% to 6% of the loan amount. However, It’s crucial to carefully review the terms and conditions set by the lender before proceeding with a mortgage recast to ensure that it aligns with your financial goals and circumstances.
Can I tap into my home’s equity without refinancing?
Yes, you can pull equity out of your home without refinancing through a home equity loan (for a lump sum against your equity) or a home equity line of credit (HELOC). A HELOC allows you to borrow funds as needed, typically with a variable interest rate, up to a set limit. These sources of funds can help homeowners who want to use the equity in their home for things like home improvements, debt consolidation, or paying for college.
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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance