Workshop Teaches How To Own Your Own Home
Renters, you may or may not know this yet but regardless, you will want to continue reading. You are already paying a mortgage! Why separate yourselves from your hard-earned wages for a mortgage that isn’t yours? Rent, especially in Hawaii adds up – an average rent of $2,250 per month totals $27,000 at the end of the year. Over a longer period of time, you’re looking at paying $81,000 in three years and $135,000 in five years toward someone else’s mortgage.
You would be surprised at just how much mortgage your rent payment can support. With a reasonable credit score and securing an interest rate of 4.75 percent, $2,250 will support $431,325 excluding RPT, HOA fees or maintenance fees.
A major roadblock to purchasing a home is the down payment. Now do all mortgages require a 20 percent down payment? The exciting answer is no! There are mortgage programs available that have 5 percent, 3 percent and even zero percent (not a misprint) down payments.
Becoming a homeowner can sometimes feel out of reach in Hawaii, but equipped with the right knowledge, a strategy and support from a team of professionals, most people can achieve this dream. “At Berkshire Hathaway HomeServices Hawaii Realty we run monthly workshops geared toward educating and troubleshooting for first time home buyers,” said co-president Earl Lee. “We take time to answer questions, cover a historical look at real estate in Hawaii, impact of inflation, benefits of home ownership and why buy now.”
Knowledge is power and partnership is essential. “The first thing you have to do is start,” said Kevin Sumimoto of Hawaii Lending Alliance. In many cases this means talking to a loan officer to find out what you’re qualified for and understand what programs may be available to you. “It’s really important to be open and honest with your loan officer – this is the best way to find the right plan for home ownership,” said Sumimoto. “What you think is bad credit may not be so bad. Buying a home is likely the most money you’ll spend in your life – it’s emotional and personal and there are no dumb questions.”
The next BHHS Hawaii Realty workshop will be at the Kailua office on Saturday, Sept. 22 from 9:30 to 11:30 a.m. Hawaii Lending Alliance, which is affiliated with Berkshire Hathaway Hawaii Realty, will be present at all workshops. Loan officers work alongside agents to create a collaborative team to assist all who dream of home ownership. Each month a different office hosts a workshop, so if Honolulu or Kapolei is more convenient there is an opportunity to attend a workshop nearby.