Local concern grows over rate increase

 

Part 2 of Neighbor islands show inventory up

 

HONOLULU ADVERTISER November 13, 2005

BY LISA SCONTRAS

Custom Publishing Group

 

It may not sound like a lot — one percent. But the one-percent rise in interest rates some experts are prepared for next year will impact Hawaii homebuyers more than the average Mainland buyer.

 

Why?

 

“Because our prices are higher,” says Marie Imanaka, president of Wells Fargo Home Mortgage of Hawaii. “If you take our average $600,000 home and compare it to a $200,000 home on the Mainland, and add one percent interest increase, there’s going to be a big difference in who is affected more.”

 

And with prices leveling off in some places, it may be an added incentive for buyers to jump into the game.

 

According to Imanaka, because the real estate climate has been so lively, there is a greater variety of loan products available now than ever before.

 

“We’ll match the customer with the right loan product,” says Imanaka. “And if buyers are anxious about buying new construction with completion dates months away, we have long-term lock-ins. When you get within 60 days of closing, you can either lock it in or float down to the rate — if it goes down. Worst case scenario, you can get today’s rate.”

 

back to Helpful Articles for About Hawaii

 

view Part 1 of this article