Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment and/or financial advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. Visit one of our branches today to learn how we can help you with your finances.
How to Save for a Home in Hawaii
By
ASB February 19, 2020 | 5 min read N/A
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.
Tax Season is Here
Being Prepared is Key for Tax Season
Here are some helpful points as you prepare your taxes this year whether you get a refund or owe money.
Anticipating a Refund?
If you're expecting a tax refund and want to have the IRS deposit your refund directly into your ASB acount, you'll need the following information for your tax return:
1
ASB Transit Routing Number:
Our transit routing number is 321370765
2
ASB Account Number:
To find your Account Number please see your Statement of Account information or the bottom of your checks.
3
Type of Account:
- For Checking and Money Market accounts, please select "Checking Account"
- For Savings Accounts, please select "Savings Account"
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
Want to make your refund work hard for you? Get a Certificate of Deposit.
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Eligible working families can benefit from the Earned Income Tax Credit (EITC). The EITC is a refundable federal income tax credit for low- to moderate-income households. Changes in marital, parental, and financial status may qualify millions of workers for EITC for the first time.
Learn More >
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
Banking Without Going to the Bank
By
ASB February 03, 2020 | 5 min read Personal
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.
Today's Mortgage Rates Hawaii
Below are today's mortgage rates (01/10/2025) for our Conforming, This is HOME, Jumbo and Veteran Affairs (VA) Loans.
Visit a Home Loan Center >
Find a Loan Officer >
American Savings Bank is Hawaii's #1 Local Mortgage Lender* *State of Hawaii Bureau of Conveyances Jan-Oct 2024, recorded total value of residential, non-wholesale, purchase mortgages.
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Member FDIC NMLS #423168
© 2024 American Savings Bank, F.S.B. RATES FROM AMERICAN SAVINGS BANK
Contact us today for more information on financing
(808) 627-6900 | asbhawaii.com
How Bad Credit at a Young Age Can Impact Your Life
By
ASB January 31, 2020 | 5 min read N/ABad credit when you're young can set you up for a more difficult path as you get older. Learn what you can do to set yourself up for success in the future.
How Bad Credit at a Young Age Can Impact Your Life
- 38% of Americans under age 30 have a credit score below 621.
- Only 14% under age 30 have an Excellent score over 720.
- A score below 660 is generally considered Poor. Scores under 620 are commonly considered Bad.
- Lenders view people with poor credit as riskier borrowers.
- A lower score may indicate a person is less likely to make their payments. This means a lender may not get their money back on time.
- You must use credit to build your credit score. It takes time so it is best to start while you are young.
- Bad credit can hurt your chances of getting approved for:
- Auto Loans
- Personal Loans
- Credit Cards
- Mortgages
- Employment
- Housing Rentals
- If approved for credit, you’ll likely pay the highest interest rates available.
- You’ll likely pay higher insurance premiums.
- You may also have to pay security deposits for utilities like cell phones, electricity, or internet.
- For cell phones with payment plans, you may not be approved or may have to pay more upfront.
Good Habits to Avoid Bad Credit
Trying to build credit and prevent a bad credit score? Looking for ways to repair your credit? Use these tips for building and improving credit:
- Pay your bills on time. Late payments are a big factor in your credit report.
- Don’t use all of the credit available to you.
- Your credit utilization rate (the amount of credit you’re using vs. your credit limit) greatly impacts your score.
- The less total credit you use shows you’re responsible with your spending.
- Don’t open credit accounts all at once.
- Multiple inquiries on your credit report can hurt your score.
- If you need a loan or credit card, do your research first to see if you’re qualified.
- Apply only for one account at a time.
- Keep accounts open.
- If you already have a credit card, don’t close the account.
- Even if you’ve paid the balance off and stopped using the card, the account shows up on your credit history.
- A longer history of open accounts with on-time payments and low credit usage could help improve your score.
How to Recognize and Avoid Phone Bank Scams
By
ASB January 30, 2020 | 5 min read N/A.jpg)
Scam artists today are more tech-savvy than ever before – from impersonating a bank representative to even using a fake caller ID number to appear as if a bank is calling your phone. With this in mind, it’s important to be vigilant at all times. And, if you’re a parent of a child who has a cell phone, make sure they’re aware of how to stay safe, too. Here are a few helpful tips on recognizing and avoiding phone scams.
Common Bank Calling Scams
The most common phone call scams include:
- Bank Scams
Beware of telemarketers. Some telemarketing phone scams include someone pretending to be a charity asking for donations, offering free trials, or selling fake products. Each of these types of phone scams involves asking for your personal or credit card information.
- Telemarketing Scams
Beware of telemarketers. Some telemarketing phone scams include someone pretending to be a charity asking for donations, offering free trials, or selling fake products. Each of these types of phone scams involves asking for your personal or credit card information.
- Sweepstakes Scams
A sweepstake or lottery scam involves calling with exciting news: that you’ve won a prize! To receive the prize, however, the winner will need to send a small amount of money or give out detailed personal information. A sweepstakes scam collects your money, and then never sending the prize.
Know the Signs of a Fake Phone Call
While knowing the most common phone scams used by scam artists is important, the tactics used can change at any moment. In order to help protect yourself from a phone scam, you should recognize the signs of a fake phone call.
- Commonly changing information about who they are or changing the subject, first telling you one thing and then changing the facts. This can distract you from catching on to the scam.
- Saying they are a representative of your bank and asking for personal information. Scammers can spoof Caller ID to make it appear as if you are getting a call from the bank.
- Using a sense of urgency or fear to get you to act fast.
- Acting helpful to gain your trust so they can exploit that trust.
- Asking for details about your personal information.
What Information Should You Never Provide?
To protect yourself from scam phone calls, remember to never provide confidential information over the phone. ASB will never ask contact you to ask for your personal or account information. Unless you initiate a call to a reputable number, never give out the following information:
- Personal details like your full Social Security Number or answers to personal security questions.
- Financial information including credit card numbers or bank account information.
- Passwords or login information for online sites like your bank website, retirement accounts, or email.
Always be aware when an unknown number calls your phone. Caller ID can be spoofed to appear as if a legitimate number is calling. This can also happen via text. Even if the caller says they’re an authority figure or your relative, double-check the information first. If something doesn’t seem or feel right, it probably isn’t. If someone requests for you to provide this information, it is best practice for you to hang up the call and call back the company to confirm the legitimacy of the call/inquiry.
Senior Citizens: A Common Target
Scam artists tend to target senior citizens, who are more vulnerable to identity theft and fraud. Often referred to as “the crime of the 21st century,” many scams involving phone calls make it seem like a loved one is on the other end of the line and in need of financial support. The reasons scammers may choose to target a senior include:
- Seniors may be less savvy when it comes to technology, including smart phones.
- The relatively trusting nature of many seniors encourages them to pick up the phone and answer questions honestly.
- Perceived to have more monetary savings, especially retirees in Hawaii.
- Seniors looking for a purpose in retirement and in their elder years, may be more willing to help a younger person in need.
You can help yourself and seniors in your life avoid these scams by knowing the warning signs of scam artists.
The Ultimate Guide to a Year of Savings
By
ASB January 06, 2020 | 5 min read N/A
With 2020 just beginning, there’s no better time to start working towards your financial goals. Our team here at ASB has put together a list of 12 helpful tips – one for each month of the year – to help you take control of your finances in 2020. Feel free to tackle these in order or by picking the tip that works best for you from month to month.
- Take Your Financial Checkup
Feeling overwhelmed and unsure of where to start? Take our nine-question Financial Checkup! This short assessment will help you figure out what to focus on in the New Year.
- Make a Budget
Start the year off right by creating a budget. A budget helps you plan for expenses while saving up for the future. Create a monthly budget for the year to help you keep track of your expenses and savings from month to month. As you prepare your budget, go over your spending from the past year to get a better understanding of where you spend money. Take a look at the largest categories and try to trim some of your spending in each category.
- Start Saving
The sooner you start saving, the more your money can grow. There are a variety of different savings accounts you can choose to open – click here to learn more. If you have young children, consider putting put money into a college savings account so the money can grow over the years.
- Review Your Long Term Savings
Does your employer offer a 401(k) with a matching program? Many employers in Hawaii do, yet many people don’t take full advantage of it. Go over your account and see if you’re currently maxing out your company match or if you can increase your contribution by 1% to contribute more in the New Year. If you want to do more to save for the long-term, consider a goal like retirement planning. Make a commitment to save a certain percentage each month towards a long-term financial goal.
- Automate Your Savings
Personal finance guru Dave Ramsey suggests automating savings as one of his biggest money saving tips. Set up an automatic transfer each month from your checking account to your savings account. This way, you’re not tempted to use money that’s meant for savings.
- Save Electricity, Water…and Money!
Install LED light bulbs, low-flow shower heads and faucet aerators to reduce your utility usage. During the hot summer months, consider taking advantage of the outdoors to cool off instead of running your AC – such as visiting your public library, community pool or beach. These money saving tips will help the environment, too!
- Take Charge of your Credit
Check in on your credit card balances. Have you been paying all your balances on time? Consider setting up Bill Pay or automatic payments to avoid costly fees and interest charges. Keeping an eye on your credit score is important to build credit so you can borrow money wisely when you need it. Consider using a free credit score tool, such as www.freecreditscore.com.
- Trim Down Excess Spending
Do you tend to make impulse buys? Consider keeping an item in your “Cart” for at least 24 hours before making the purchase – then you’ll know if you really do need to buy it. Or, save big ticket items in your cart until the next big seasonal sale such as a holiday weekend or Black Friday. Don’t underestimate the values of coupons, either. Check out the Sunday section of the newspaper, MidWeek or use online couponing apps to find savings on everything from household staples to online shopping.
- Go on a Staycation
We’re lucky enough to live in one of the most popular vacation destinations in the world. Take advantage of our island home and plan a staycation. Visit your nearest beach, state park, or cultural center for an inexpensive vacation. Consider a neighbor island vacation instead of going to the mainland or out of the country.
- Save Every Time You Splurge
Match your spending with savings the next time you splurge. For example, if you buy a $50 shirt, put $50 into your savings before you’re allowed to splurge again. When you splurge on a meal out, go to breakfast or lunch instead of dinner. Menus for breakfast and lunch tend to be less expensive than dinner.
- Ask for Discounts
The best money saving tips are simple. Ask for a kamaaina discount when eating at a restaurant or shopping at stores in tourist areas such as Waikiki. Many retailers also offer senior or military discounts if you qualify for either category.
- Consider Refinancing
Consider whether refinancing your home or student loans could save you a significant amount of interest. If you have good credit and can get a lower rate, refinancing could be a good idea.
Jumbo Loans1
What's a Jumbo Loan?
When you need to borrow more than $1,209,750 - a Jumbo Loan could help! This loan can be used for purchases or refinances in Hawaii.
Call us: (808) 627-6900 | Toll-free: (800) 272-2566
American Savings Bank is Hawaii's #1 Local Mortgage Lender*
*State of Hawaii Bureau of Conveyances Jan-Oct 2024, recorded total value of residential, non-wholesale, purchase mortgages.
More About Jumbo Loans
Looking for something bigger for your dream home? At American Savings Bank we offer Jumbo Loans with competitive rates that are available for both fixed and adjustable rate (ARMs) mortgage programs.
A Jumbo Loan may be a good option for:
- A fixed or adjustable mortgage in Hawaii
- Loan amounts greater than $1,209,750 and up to $2.75 million
- New home purchases or refinancing
Avoid Costly Mortgage Insurance
With Our "Piggyback" Offer2
Here's How It Works:
- 90% financing (10% down payment) with a simultaneous first mortgage and home equity line of credit (HELOC)
- Combined loan amount up to $2 million for first mortgage and HELOC
- HELOC terms include a 10-year interest-only draw period followed by a fully amortized 20-year repayment period
- HELOC features a 20-year fixed rate equity loan option (FRELO) up to $500,000
For more information on our Piggyback Offer, contact a mortgage loan officer today >
Jumbo Loan Alternatives
You may also use our Jumbo Loans simultaneously with our Second Mortgage or Home Equity Loan Programs to help with a low down payment requirement and eliminate the need for private mortgage insurance.
WAYS TO GET STARTED
PROGRAMS AND RESOURCES
Products
Home Purchase
First Time Home Buyer
Refinancing a Mortgage
Jumbo Loans
Land and Home Construction Loans
U.S. Department of Veteran's Affairs (VA) Loan
Compare All Mortgage Loans
Home Equity Line of Credit
Programs
Conforming Loan
Non-Conforming Loan
Combined First and Second Mortgage
State of Hawaii Mortgage Credit Certificate
First Time Home Buyer Programs
Learning and Resources
Buying Your First Home
Detailed Loan Process Guide
Mortgage Glossary
Mortgage Rates
Common Questions:
APR stands for “Annual Percentage Rate” and represents the price you pay to borrow money. APR is a broader measure than interest rate because it includes the interest rate plus other costs such as lender fees, closing costs and insurance. You can use APR to compare loans offered by different lenders when shopping for a mortgage loan.
For example, based on a purchase price of $500,000; loan amount of $400,000 (20% down payment; 80% loan-to-value); interest rate of 4.00% and 1.00% points, the monthly principal and interest payment on a 30-year fixed rate mortgage would be $1,909.66 and an APR of 4.119%. Keep in mind your mortgage loan monthly payment will be higher as lenders typically include property tax and insurance costs.
Jumbo Loans are any loans over the conforming loan limit set annually for each county by the Federal Housing Finance Agency.
Getting pre-qualified is highly recommended since many sellers require a pre-qualification letter from a reputable lender. Plus, during the pre-qualification process your ASB Loan Officer will help you determine the appropriate price range before you go house hunting.
Fannie Mae® is a registered trademark of the Federal National Mortgage Association. Freddie Mac® is a registered trademark of the Federal Home Loan Mortgage Corporation.
- Loan programs and products are subject to loan qualification, credit policy and underwriting standards for the respective program or product. Certain terms, conditions and restrictions may apply. Programs/products subject to change or discontinuation without notice.
- The Combined First Mortgage and Piggyback HELOC Program is a residential loan program through American Savings Bank (ASB) with a maximum combined loan amount of $2,000,000 and a maximum combined loan-to-value (CLTV) of 90%. The residential first mortgage maximum loan amount is $1,750,000 (the maximum loan-to-value (LTV) is 80% for loan amounts up to $1,250,000 and 75% above $1,250,000 and up to $1,750,000). The ASB Home Equity Line of Credit (HELOC) 2nd mortgage maximum loan amount is $500,000.
There are two monthly payments for this financing program. For example, based on a purchase price of $2,200,000, the first mortgage amount would be $1,650,000 (75% LTV) and the HELOC is $330,000 (CLTV 90%); down payment is $220,000. The monthly principal and interest payment for the first mortgage is $10,839.33 as of 3/18/2024, the interest rate is 6.875% and 1.125 points/7.030% Annual Percentage Rate (APR). The actual monthly mortgage payment is higher when you factor in the monthly impound amount for property tax, hazard insurance and other applicable impounds. Assuming the HELOC is fixed with a 20-year FRELO, the APR as of 3/18/2024 is 9.00 % and the monthly payment is $2,969.10 for an owner-occupant. Other FRELO terms and rates are available. FRELO may be added upon your request. See the FRELO Conversion Addendum for minimum and maximum amounts for conversion to a FRELO.
If the borrower does not choose the FRELO option, the HELOC is interest-only based on the monthly variable rate and the outstanding principal (no principal amount is reduced unless there are additional payments made by the borrower each month; no prepayment penalty during the draw period for 120 months). After 120 months, the line of credit draw period ends (i.e., no further draw is allowed on the line), and the repayment period begins for 240 months. The monthly payment in the repayment period is principal plus interest based on 1/240th of the outstanding principal on the first day of the repayment period plus accrued interest. If your line amount is more than $25,000, a fee of $500 will be assessed if you request we close it within three years from the agreement date. This fee will not be assessed if: (i) your line is $25,000 or less, (ii) you sell the collateral to an unrelated/unaffiliated third-party, or (iii) you pay off your loan with proceeds from a real estate secured loan from us. HELOC must be secured by fee simple property located in Hawaii. Fire, hurricane, flood (if in flood hazard zone) and localized peril (if in a lava hazard zone) insurance policies are required at homeowner’s expense. Payments do not include taxes or insurance premiums; your actual payment will be greater. Subject to borrower qualification and credit and underwriting policy. Program subject to change or cancellation without notice.
U.S. Department of Veterans Affairs (VA) Home Loan1
VA Loan Program
The U.S. Department of Veterans Affairs (VA) Loan Program2 helps veterans, active-duty service members, Reservists, National Guard members, and certain surviving spouses realize their dreams of homeownership or refinance a home loan.
American Savings Bank is Hawaii's #1 Local Mortgage Lender*
*State of Hawaii Bureau of Conveyances Jan-Oct 2024, recorded total value of residential, non-wholesale, purchase mortgages.
Take Part of the VA Loan Program
Are You Eligible For a VA Loan?
The Certificate of Eligibility (COE) verifies to the lender that you are eligible for a VA-backed loan. The evidence needed depends on the nature of your eligibility.
What's Your VA Loan Allowance?
Your Basic Allowance for Housing (BAH) is a U.S. based allowance that provides Service members fair housing compensation. It's determined by geographic duty location, pay grade and dependency status.
We’re here to help you put down roots in Hawaii
VA Home Loans Program Features and Benefits
- 100% home financing
- Highly competitive rates
- No down payment for loans up to $1,500,000
- Loans above $1,500,000 available
- No monthly mortgage insurance
- Purchase, cash-out refinance or interest rate reduction refinance loans (IRRRL) available
- Experienced VA loan officers assist you every step of the way
WAYS TO GET STARTED
PROGRAMS AND RESOURCES
Products
Home Purchase
First Time Home Buyer
Refinancing a Mortgage
Jumbo Loans
Land and Home Construction Loans
Home Equity Line of Credit
Programs
Conforming Loan
Non-Conforming Loan
Combined First and Second Mortgage
State of Hawaii Mortgage Credit Certificate
First Time Home Buyer Programs
Learning and Resources
Buying Your First Home
Detailed Loan Process Guide
Mortgage Glossary
Common Questions:
The VA mortgage program works by pairing a financial institution, such as ASB, with the VA. The VA then guarantees a portion of the mortgage taken out by an eligible veteran. The loan itself is similar to a conventional mortgage and can be used to purchase or refinance a home at a fixed rate. In fact, by being backed by the government, VA mortgage rates tend to be lower and loan terms are generally favorable to other loan programs.
Unlike conventional loan programs, a VA loan often does not require a down payment. With little to no down payment requirements, a VA mortgage can be a great way for an eligible veteran to purchase a first home. You can even use a VA home loan for the entire purchase price of your qualified Hawaii home purchase.
In addition to mortgages for purchasing a home, VA loans can be used for refinancing a current home. A VA loan refinance allows you to potentially take advantage of lower interest rates and a change the term of your VA loan. You may also be eligible for a cash-out refinance of your current home through the VA loan program. Cash-out refinances of VA loans allow you to refinance your current mortgage and receive a check at closing.
While VA mortgage loans offer many benefits to home buyers, not everyone or every property is eligible. To be eligible for the VA loan program, you must be a U.S. veteran or reservist. A surviving spouse of a U.S. military member may also qualify for a VA loan. In addition to these base qualifications, other requirements of eligibility and entitlement must be met to qualify.
The home or property you intend to purchase must also meet certain eligibility requirements. For an ASB VA mortgage, your property must be a one-unit single owner/occupant in the State of Hawaii or a single family dwelling (SFD). Certain single unit condominiums may be eligible as well, if they are approved by the VA.
As with any mortgage, the first step before you purchase your dream home with a VA home loan is to understand how much you can afford. Speak with an experienced ASB Loan Officer to discover if you're eligible for a VA loan. Together we'll look at your current income and savings to find the right VA mortgage terms for your dream home in Hawaii.
VA loans have many benefits for eligible veterans. With a few restrictions, VA loans don’t require a down payment. Most other types of home loans require at least a 5% down payment, and even some first-time home buyer loans require at least 3.0% down. Additionally, VA loans don’t require monthly mortgage insurance. Almost all other loans require homeowners who put down less than 20% of their home purchase to pay a private mortgage insurance premium each month. In fact, in some cases, since there is no down payment requirement, a VA loan can be for the entire amount of a home purchase.
APR stands for “Annual Percentage Rate” and represents the price you pay to borrow money. APR is a broader measure than interest rate because it includes the interest rate plus other costs such as lender fees, closing costs and insurance. You can use APR to compare loans offered by different lenders when shopping for a mortgage loan.
For example, based on a purchase price of $500,000; loan amount of $400,000 (20% down payment; 80% loan-to-value); interest rate of 4.00% and 1.00% points, the monthly principal and interest payment on a 30-year fixed rate mortgage would be $1,909.66 and an APR of 4.119%. Keep in mind your mortgage loan monthly payment will be higher as lenders typically include property tax and insurance costs.
There are a few items you must consider before applying for a mortgage loan. We recommend that you have a good understanding of how much you want to borrow, what your credit score is, and that your financial information is readily available.
We typically ask for a recent Leave and Earnings Statement (LES) or two recent paystubs as well as other documents to verify the information that you provide to us. Every situation is different, so please contact a loan officer today.
Getting pre-qualified is highly recommended since many sellers require a pre-qualification letter from a reputable lender. Plus, during the pre-qualification process your ASB Loan Officer will help you determine the appropriate price range before you go house hunting.
- Loan programs and products are subject to loan qualification, credit policy and underwriting standards for the respective program or product. Certain terms, conditions and restrictions may apply. Programs/products subject to change or discontinuation without notice.
- For VA loans, there is a VA funding fee which will vary based on the type of loan and down payment amount, if any. This funding fee may be financed or paid by the borrower at loan closing; and, it is a percentage of the loan amount. Based on a purchase price of $400,000 with a funding fee of 2.30%, the loan amount is $409,200 which is 100% of the purchase price (no down payment on the home purchase) plus the funding fee.
Department of Veterans Affairs Certificate of Eligibility required. Other terms and restrictions may apply.