How to Save for a Home in Hawaii

February 19, 2020 | 5 min read N/A

How to save for a home

HOW TO SAVE UP FOR A HOME
It’s common knowledge that Hawaii is an expensive place to live. In fact, real estate is one of the highest costs of living in the Aloha State. The median home price in Hawaii is $635,000, which ranks as the highest median in the United States.

Homeownership might seem like a faraway dream for many, but at ASB, our teammates want to help make that dream a reality. One of the easiest ways you can work towards your goal of buying a home is by saving money, immediately. Here are a few tips on how you can save up for your future home.

SAVE FOR A HOME IN A YEAR
Saving up can go a long way over the course of one year. Here are a few ways you can get closer to buying a home in just 12 months.

Set Your Budget:
It’s tempting to look at different homes and slowly increase your budget. However, if you want to buy a home within a year, you need to be realistic about your budget. Look at your current assets and estimate how much money you can realistically save in the next year. Even if you can get qualified for a huge loan, that doesn’t mean the monthly payment is realistic. Take a look at your current income and expenses to see how much of a monthly payment you can afford. Use this estimated down payment as a starting point in your home search. Many home loans require you to pay 20% of the purchase price as a down payment although there are some loan programs that require much less. Contact a loan officer to find out how much of a loan you can prequalify for, and approximately how much down payment you’ll need.
Consider a Starter Home:
A home purchase is a long-term investment, but it doesn’t have to be for life. Your dream home may only be $10,000 more than one that doesn’t have the exact countertops you want. If you’re feeling down that you can’t afford your dream home right away, consider a smaller starter home. Budget for a less expensive home now at a price you can comfortably manage. As the home increases in value and your equity grows, you may be able to sell it for a profit and move to a bigger home when you’re ready.
Create a Savings Goal:
Set savings goals for the next 12 months. Look at your monthly income and expenses to help determine how much money you have to work with. If you are married or have a partner, create a budget that combines your income and expenses. Consider setting monthly and quarterly savings goals to help you stay on track for the next year.
Share Your Plans with As Many People as You Can:
Telling lots of people about your plans to buy a house in a year is a great way to motivate yourself to keep saving. Let friends, family, and coworkers know about your savings goal. Find an accountability buddy – such as a good friend or family member to help you stay accountable by checking in each month. You can even make it a game by giving yourself a small reward when you reach your goal.
Increase Your Income:
If you have free time, consider looking for another source of income. Even if you’re limited on time, you can host a garage sale or sell your unused belongings online. This can help you earn extra cash for your down payment, and reduce your spending when you’re bored.
Beware Hidden Costs and Save for Emergencies:
Closing costs, such as loan origination fees or real estate agent fees, often cost several thousand dollars on top of your down payment. Once you make a home purchase, you’re responsible for the care and maintenance of the property. This might mean you need to make necessary repairs to wiring or plumbing, and you may need to invest in lawn care equipment or new furnishings.
Prepare for the Unexpected:
Set yourself up for success by creating a savings account as an emergency fund for home expenses. Build up this fund before you purchase the house so you have it ready to help cover costs from the day you move in. It will also help you to prepare for unexpected home issues in the future, like a burst pipe or broken washing machine.

TIPS ON SAVING WHILE RENTING:
Do you feel like your rent is too high, making it difficult to save for a down payment on a house? It’s a common feeling among renters, but there are a few ways you can save even while renting. Much like saving for a home in a year, you can use budgeting and saving strategies to help you increase your savings even if a lot of your budget goes to rent each month.

Start with Your Debt:
If you have high-interest debt like credit card balances, it’s best to focus on paying that off before saving for a home. Unpaid debt costs you money in the amount you owe plus the cost of interest and fees. Try paying off one debt at a time, starting from the smallest and working your way up from there. This is known as a debt snowball and allows you to celebrate your small victories of each debt. When a debt is paid off, you can put part of the debt’s payment towards your down payment savings.
Consider a Roommate:
Do you live alone and have an extra bedroom in your rental? Ask your landlord if you can add a roommate to your apartment. Dividing your rent in half, or more if you have space, can drastically reduce your monthly spending on rent.
Cut Down Monthly Spending Elsewhere:
Look for other areas to reduce your spending if you can’t cut the price of your rent. Get rid of cable and unused streaming services by using free streaming services or over-the-air channels. If your unit has a washing machine, use cold water instead of hot to reduce energy costs. Turn your air conditioning temperature up or down during the day (to match what would be the normal temperature of the room) while you’re at work or out to save on electricity.

Ready to start saving for a home? Make an appointment to get started with ASB today.

Anticipating to Owe?

When you owe your taxes, make sure to have the ASB routing transit number and the checking or savings account number that you want to use to pay the amount owed available. The transit routing number and your account number can also be found at the bottom of your checks.

Example Statement of Account

Where to find your Account Number and Type along with our Transit Routing Number

Example Check

Where to find your Account Number along with our Transit Routing Number on a check

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Banking Without Going to the Bank

February 03, 2020 | 5 min read Personal

Banking without going to the bank

SKIP A TRIP TO THE BANK WITH ONLINE BANKING

We‘ve all been there: you’re running late for an event when you realize you need to stop at the bank. Worse, you make the detour only to find you’re too late and the bank’s closed for the day. Wouldn’t it be better if you could skip the trip to the bank when you need to deposit a check, transfer money, or just check your account balances?

Luckily, many banks now offer online banking to help cut some of the hassles out of your life. At American Savings Bank, our Online Banking system is just one of the ways we’re constantly trying to make banking easier for our customers. You can use online banking and mobile banking to manage your ASB accounts from almost anywhere. Simply log in using a computer or smart phone (using the ASBHawaii mobile app) to stay up to date.

Below are some great benefits to using Online Banking when you’re short on time but need to access to your accounts.

TYPES OF SELF-SERVICE BANKING:
Online/Mobile Banking is one of many ways that you can do your banking without having to visit a branch. ASB provides a variety of tools to help you manage your accounts, perform transactions, and get access to your funds.

Some of the types of self-service banking offered by ASB include:

ATMs: Automated teller machines, which you probably know as ATMs, allow you to complete basic banking transactions with a computer instead of a human teller. We have ATMs located throughout Hawaii to give you quick access to your money when you’re on the go. A majority of our ATM’s allow you to complete different types of transactions, including: deposits (check and cash), withdrawals, transfers, mini statements, balance inquiry, etc. ATM’s are a convenient option to complete simple transactions and access basic transaction information when branches are busy or you are visiting outside of bank hours.
Phone Banking: Phone banking is a simple self-service tool you can use to manage your money. Our phone banking system allows you to make transfers between accounts, schedule recurring transfers, make a loan payment, and place a stop payment on a check. You can also get information on local branch hours based on zip code. To use our phone banking system, simply call 808-627-6900 or toll-free, 800-272-2566.
Direct Deposit: Hate visiting the bank every other week to deposit your paycheck or government benefits check? Direct deposit allows you to set up an electronic link between your payer and your ASB checking account. The deposits are made at the same time as your normal paycheck, but instead of a paper check, the money goes directly into your checking account. Use our online automated account switching solution ClickSWITCH to set up your direct deposit or switch your recurring direct deposits from your previous financial institution account to your American Savings Bank account.
Credit and Debit Cards: Credit and debit cards are another form of self-service. These cards work by using a plastic card with a magnetic strip or electronic security chip to process your payments at retailers. When you swipe a debit card, the money is automatically withdrawn from your checking account to pay the retailer. At participating merchants, you can also get cash back while using your debit card to pay for your items. When you use a credit card, the money is taken from your credit limit and your credit card company pays the merchant. You might consider a credit card payment like a very short-term loan. The charge is added to your current credit card balance and will be added to your monthly credit card bill.
Online Banking: Perhaps the most widely-known form of self-service is online banking. Through online banking, you use a secure login to access the online platform. Once logged in, you’ll have access to your account and loan balances. You’ll also have the ability to make and schedule transfers and even make loan payments. Set up eStatements so you’re not getting paper account statements each month and manage/pay your bills using Online Bill Pay all from your online account.
Mobile Banking: Mobile banking gives you all of the functionality of online banking. Our convenient ASB Hawaii Mobile App keeps your ASB accounts in your pocket at all times. You can quickly and securely access your accounts using Touch ID or Face ID from your iPhone or you can set up a four digit passcode. Mobile banking has all of the same exact features as Online Banking, except you can also use the app to deposit checks into your ASB account.

BENEFITS OF ONLINE BANKING:
Online Banking comes with a lot of advantages over visiting a branch for simple banking functions. Whether you need to transfer money or pay a bill, ASB Online Banking is a convenient solution to save you time and effort.

Convenient: Online Banking and Mobile Banking make it easy to perform simple banking tasks without an extra trip to the bank. You’ll spend less time traveling to the bank and waiting in line. Went on a shopping spree and need to check your balance? Hop on the mobile app or visit a nearby ATM to quickly get access to your account.
Secure: Online Banking tools are secure to help keep your information safe. If you lose a paper statement or check, there’s almost no way to know if your information is secure. With Online Banking, you can rest easy knowing your private details and account information is secure. At ASB, we make online banking security one of our highest priorities.
Instant Notifications: With Online Banking, you can set up alerts to receive a text or an email whenever there is activity in your account. You’ll know exactly when a check is cashed or a transfer is made in your account.
Faster Transactions: Since you don’t have to wait in line at the bank, you can make transfers, make deposits, and pay bills faster. Simply click your mouse or tap your finger to send money between your ASB accounts or set up recurring payments for your bills.
No Physical Restrictions: Have you ever needed to deposit a check at the bank after work? You probably found yourself hurrying to your nearest branch right at the end of the day. With Online Banking and our ASBHawaii Mobile App, you don’t have to worry about branch hours or whether it’s a holiday. You can complete your basic banking tasks from your phone, tablet, or computer.

READY TO GET STARTED WITH ONLINE BANKING?
Sign up for Online Banking with ASB and get access to your accounts from almost anywhere. Setting up an online account is easy and you’ll be able to enjoy all the benefits of Online Banking. Skip your next trip to the bank by enrolling in Online Banking today.

Conforming & Jumbo Loans
	Rate	Points	APR	Down Payment	Monthly Payment (principal & interest) per $100,000 borrowed
30 Year Fixed¹	6.000%	2.125	6.256%	20%	$ 599.55
Jumbo 30 Year Fixed²	6.000%	2.125	6.251%	20%	$ 599.55
15 Year Fixed¹	5.125%	2.125	5.537%	20%	$ 797.32
The interest rates, annual percentage rates (APRs), and discount points shown are subject to change without notice and may vary based on credit history and market movement. Rate is based on a 45 day lock for purchase transactions. Monthly payment example does not include amounts for real estate taxes and insurance premiums. If an escrow account is required or requested, the actual monthly payment will be greater. Rates shown include our purchase promotion of .25 points off closing costs. Pricing options with fewer points are available. Above rates are for purchase transactions. Refinance rates may be higher. Maximum loan amount $1,209,750 For loan amounts greater than $1,209,750 Learn more about ASB's Conforming Loans > Learn more about ASB's Jumbo Loans >

This is Home - 10 Year Adjustable Rate Mortgage (ARM) Loan
	10 Year ARM
Initial Interest Rate	5.125%
Points	2.000
APR	6.063%
Down Payment	20%
Initial Monthly Payment (principal & interest) Per $100,000 borrowed	$ 544.49
First Adjusted Interest Rate Cap	5%
Subsequent Adjusted Interest Rate Cap	1%
Fully Indexed Rate*	7.125 %
Fully Indexed Payment (principal & interest) Per $100,000 borrowed*	$ 673.72
Maximum Lifetime Cap Over Initial Interest Rate	5%
Floor Rate	2.75%
The interest rates, annual percentage rates (APRs), and discount points shown are subject to change without notice and may vary based on credit history and market movement. Interest rate adjustments are subject to a floor rate of 2.75% and a maximum rate of 5.00% above the initial rate. Rate is based on a 45 day lock for purchase transaction. Monthly payment example does not include amounts for real estate taxes and insurance premiums. If down payment is less than 20%, then APR and monthly payment will increase due to mortgage insurance premium. If an escrow account is required or requested, the actual monthly payment will be greater. Rates shown may not include any current promotions or specials. Pricing options with fewer points are available. The Fully Indexed Interest Rate and Fully Indexed Payment are based on the current index plus the margin at the time of the effective date shown above, and are only an example of what your rate and payment would be if your loan adjustment date was the date shown above. The Adjusted Interest Rate and Adjusted Payment may differ when the term for your initial rate expires. Your mortgage will change on the adjustment dates and will be equal to an index, which is the 30 Day Average SOFR Index, the Secured Overnight Financing Rate as published by the Federal Reserve Bank of New York, plus a margin of 2.75%. * After the Initial Interest Rate period, your Fully Indexed Rate and corresponding Payment can increase or decrease every 6 months according to the current index. Learn more about ASB's This is HOME Program >

Adjustable Rate Mortgage (ARM) Loans
	7 Year ARM	7 Year ARM Jumbo	10 Year ARM	10 Year ARM Jumbo
Initial Interest Rate	5.875%	5.875%	6.000%	6.000%
Points	0.125	0.125	0.125	0.125
APR	6.545%	6.540%	6.448%	6.443%
Down Payment	20%	20%	20%	20%
Initial Monthly Payment (principal & interest) Per $100,000 borrowed	$ 591.54	$ 591.54	$ 599.55	$ 599.55
Fully Indexed Rate*	7.125 %	7.125 %	7.125 %	7.125 %
Fully Indexed Payment (principal & interest) Per $100,000 borrowed*	$ 673.72	$ 673.72	$ 673.72	$ 673.72
Maximum Lifetime Cap Over Initial Interest Rate	5%	5%	5%	5%
Floor Rate	2.75%	2.75%	2.75%	2.75%
The interest rates, annual percentage rates (APRs), and discount points shown are subject to change without notice and may vary based on credit history and market movement. Interest rate adjustments are subject to a floor rate of 2.75% and a maximum rate of 5.00% above the initial rate. Rate is based on a 45 day lock for purchase transaction. Monthly payment example does not include amounts for real estate taxes and insurance premiums. If an escrow account is required or requested, the actual monthly payment will be greater. Rates shown may not include any current promotions or specials. Pricing options with fewer points are available. The Fully Indexed Interest Rate and Fully Indexed Payment are based on the current index plus the margin at the time of the effective date shown above, and are only an example of what your rate and payment would be if your loan adjustment date was the date shown above. The Adjusted Interest Rate and Adjusted Payment may differ when the term for your initial rate expires. Your mortgage will change on the adjustment dates and will be equal to an index, which is the 30 Day Average SOFR Index, the Secured Overnight Financing Rate as published by the Federal Reserve Bank of New York, plus a margin of 2.75%. * After the Initial Interest Rate period, your Fully Indexed Rate and corresponding Payment can increase or decrease every 6 months according to the current index.

Rate	6.000%
Points	2.125
APR	6.256%
Down Payment	20%
Monthly Payment (principal & interest) per $100,000 borrowed	$ 599.55

Rate	6.000%
Points	2.125
APR	6.251%
Down Payment	20%
Monthly Payment (principal & interest) per $100,000 borrowed	$ 599.55

Rate	5.750%
Points	2.125
APR	6.010%
Down Payment	20%
Monthly Payment (principal & interest) per $100,000 borrowed	$ 583.57

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How to Save for a Home in Hawaii

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Today's Mortgage Rates Hawaii

Conforming & Jumbo Loans

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This is Home - 30 Year Fixed Loan

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This is Home - 10 Year Adjustable Rate Mortgage (ARM) Loan

10 Year ARM

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Voted One of Hawaii's Best BanksSince 2018

Monthly Payment (principal & interest)
per $100,000 borrowed

Monthly Payment (principal & interest)
per $100,000 borrowed

Veterans Affairs (VA) Loans³

Monthly Payment (principal & interest)
per $100,000 borrowed

Voted One of Hawaii's Best Banks
Since 2018