Fixed Rate Mortgages
most common type of mortgage program here in Hawaii where your
monthly payments for interest and principal never change. Property
taxes and homeowners insurance may increase, but generally your
monthly payments will be very stable.
Fixed-rate mortgages are available for 30 years, 20 years, 15
years 10 years and even 5 year mortgage loans. There are also
"bi-weekly" mortgages, which shorten the loan by calling for half
the monthly payment every two weeks. (Since there are 52 weeks
in a year, you make 26 payments, or 13 "months" worth, every year.)
Fixed rate fully amortizing home loans have two distinct features.
First, the interest rate remains fixed for the life of the loan.
Secondly, the payments remain level for the life of the loan and
are structured to repay the loan at the end of the loan term.
The most common hawaii fixed rate loans are 15 year and 30 year
mortgages. During the early amortization period, a large percentage
of the monthly payment is used for paying the interest . As the
loan is paid down, more of the monthly payment is applied to principal
. A typical 30 year fixed rate mortgage takes 22.5 years of level
payments to pay half of the original loan amount.
you can see, this option would be the most common type of loan
here in hawaii, but there are several advantages of choosing other
types of hawaii home loans, please give us a call and we can go
over all the options for you and find the home loan program that
fits your mortgage goals and keeps you financially liquid. Call
24 hours a day, Hawaii Home and Loan toll free 888.694.0455