If you’re looking for a low rate for 30 Year Mortgages with affordable monthly payments, Pearl Hawaii can help!
30 YEAR MORTGAGES EXPLAINED
Researching your options when purchasing a home may lead you to 30-year mortgages, a popular loan to buy a home. But what is a 30-year mortgage? Essentially, 30-year Mortgages are fixed-rate home loans that will be paid off completely in a 30-year term if all payments are made as scheduled. With a fixed-rate loan, the interest rate remains the same for the life of the loan.
30 YEAR MORTGAGES TERMS
Your 30-year fixed mortgage includes several components.
FIXED-RATE
A fixed interest rate does not change during the life of the loan. It might apply during the entire term of the loan or for just part of the term, but it remains the same throughout a set period.
ADJUSTABLE-RATE
A rate that may go up or down and typically responds on the economic environment.
PRINCIPAL
The principal is the original amount you borrow from a lender to purchase your home. In essence, if you buy a $800,000 home, cover the 20% down payment of $160,000, and borrow the remaining amount, your principal would be $640,000.
INTEREST
Basically, interest acts as a fee the lender charges for letting you borrow money. Lenders calculate mortgage interest as a percentage of your principal. This rate may be variable or fixed, and most of your loan payment goes toward it early in the loan term.
ESCROW
Escrow is money put aside that a third party uses to pay costs on your behalf. That may include expenses like property taxes or homeowners’ insurance premiums.
MORTGAGE INSURANCE
Mortgage insurance costs depend on your loan type and down payment.
APR
The annual percentage rate (APR) is the cost of borrowing money from the lender, shown as a percentage of your mortgage amount. The APR includes the interest rate and may cover other fees that are paid over the life of the loan.
AMORTIZATION
An amortized loan includes regular periodic payments of both principal and interest, that are paid within the term of the loan. Amortization schedules detail the monthly payments and how much of each payment goes to principal and interest.
CLOSING COSTS
Closing costs involve all the fees and costs that need to be paid before or at the time of closing. Your mortgage contract and disclosures go over all the costs that will be incurred by you as the buyer, the seller, and the lender.
EQUITY
Home equity is the amount of ownership you have in your home. The equity on your home increases as you make payments.
INSPECTION
As a borrower, you may need to get a home inspection done, where a professional evaluates the condition of the house based on a visual assessment. The report will give you details on any problems with the condition of the home.
JUMBO LOAN
A jumbo loan is a mortgage with an amount that exceeds the limits set by Fannie Mae and Freddie Mac. A jumbo loan is a good option if you’re looking to buy an expensive, luxury home, can afford a large down payment, and have a great credit score.
PMI
In the case of conventional loans, you will need to pay for Private Mortgage Insurance. Many lenders require it so that they are protected from huge losses in the event of a borrower defaulting on a mortgage.
PREQUALIFIED
Before shopping for a home, you should have an idea of how much you can afford to spend. With a prequalification, you can get an initial estimate of the mortgage amount a lender will loan you.
PROPERTY TAX
Property taxes are paid to the governing body of the area your house is located in. The amount you pay depends on the area and the type of property.
APPRAISAL
When you apply for a home loan, your lender will require that an appraisal be done on the property. This process involves assessing the value of the home through an inspection and by comparing it to similar real estate in the area.
BENEFITS OF A 30-YEAR FIXED-RATE MORTGAGE
30-year fixed-rate mortgages are a popular option with many home buyers. Here are some of the advantages they provide.
LOWER MONTHLY PAYMENTS
A 30-year mortgage spreads out the cost of your home over the 30-year term. That gives you more time to pay it off. Because of this, you pay a lower monthly payment than you would for the same property with a 15-year or 20-year mortgage.
FLEXIBILITY
Some lenders allow you to make additional payments toward your mortgage principal every month. This can help you save money in the long run by reducing your interest. Pearl Hawaii does not have a pre-payment penalty and members can make as many additional payments as they want without affecting the terms of their loan.
ABILITY TO AFFORD A MORE EXPENSIVE HOME
When you choose a 30-year term loan, you may be able to purchase a more expensive home. That’s because spreading your mortgage payments out over many years.
CONS OF A 30-YEAR FIXED-RATE MORTGAGE
A 30-year fixed-rate mortgage promises some advantages that certain homeowners may like. But this loan may not work for everyone. As a result, you might want to think about these drawbacks before you pursue one.
TAKES LONGER TO PAY OFF THE LOAN
A 30-year mortgage is the longest mortgage length you can get when buying a home. That draws out your repayment period, resulting in higher interest rates. As a result, someone with a 30-year mortgage spends more in interest compared to other loan borrowers with shorter term lengths.
TAKES LONGER TO BUILD EQUITY
As you pay the principal part of your mortgage, you slowly gain ownership of your home. This ownership is known as equity. However, it takes a longer time to build equity with a 30-year fixed-rate mortgage. This is because a small amount initially goes to your principal. So, it’s slower compared to building equity with a short-term loan.
FALL IN LOVE WITH YOUR HOME ALL OVER AGAIN…
Our 30-year fixed-rate mortgage has a fixed interest rate and monthly payments that never change which are great for those looking for stability in their home loan.
PEARL HAWAII’S 30 YEAR MORTGAGE BENEFITS
Low rates
Borrow up to $1,149,825
Affordable monthly payments
Stability – You lock in the interest rate on your mortgage for the entire term since it’s a fixed rate. This gives you a degree of predictability you won’t have with an adjustable-rate mortgage (ARM).
Gaining more time to repay is another popular reason for refinancing. If you’ve made payments on a 30-year loan for a few years, for example, you could refinance the remainder back out to 30 years. This would likely result in a lower monthly payment amount.
Payment Examples Based on an A-Tier rate of $100,000
Total Payments
Total Interest
30 Year Mortgage- Owner Occupied, First Liens
5.750%
1.00
5.878%
360
$583.57
$210,086.23
$111,467.12
30 Year Mortgage- Owner Occupied, First Liens
6.000%
0.00
6.036%
360
$599.55
$215,838.19
$116,219.08
*Annual Percentage Rate (APR). Rates are subject to change without prior notice. The loan rate advertised is an “A” Tier loan rate in our Multi-Tiered Loan Rate Program. Other rates and terms are available. Other terms, conditions, and restrictions may apply. Visit any of our branches for more information. May not be used for a business loan. The borrower must be 18 years of age or older. The rate is subject to change or cancellation without prior notice. Only improved residential properties on Oahu are accepted as collateral. The payment example does not include possible fees, insurance, or closing costs that may occur and will range dependent on your situation. The advertised rate is as of 9/27/22. There are no pre-payment penalties or annual fees. Fees that may be incurred: application fee, title insurance fee, document preparation fee, SRA\appraisal fee, tax verification fee, trust review fee, recording fees, or flood verification fee. Closing cost fees incurred will be dependent on the amount borrowed and will vary. Average Closing Cost: $800.00-$1500.00 and may vary dependent on the member's personal financial situation. You must maintain broad-form hazard insurance on the property, listing PHFCU as a loss payee. Maximum loan amount: $765,600. NMLS 472169. Equal Housing Lender. Federally insured by NCUA.
a href="https://pearlhawaii.com/wp-content/uploads/2021/04/HOME-DISCLOSURE.pdf" style="">HELOC EARLY DISCLOSURE.
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