Compare different loan terms using your home price of $350,000 with $70,000 down at 6.8%.
15-Year Fixed
$2,401/mo
Total interest: $152,141
Total cost: $432,141
Save $221,646 vs 30-year
20-Year Fixed
$2,088/mo
Total interest: $221,025
Total cost: $501,025
Save $152,762 vs 30-year
30-Year Fixed (Current)
$1,816/mo
Total interest: $373,787
Total cost: $653,787
Lowest monthly payment
Pro
Professional Simulator
Complete financial model: closing costs breakdown, rent vs buy, inflation-adjusted returns, true cost of ownership
years
%
%
%
%
10-Year Net Gain/Loss
-$173,685
After selling in year 10 at $493,710
Total Paid Over Hold Period
$398,929
Down + closing + all payments
Home Value at Sale
$493,710
3.5%/ yr appreciation
Selling Costs
$29,623
6% of sale price
Net Sale Proceeds
$225,244
After mortgage payoff + selling costs
Real Interest Rate
4.25%
Nominal 6.8% - inflation 2.5%
Real Monthly Payment
$1,254
Today's dollars (mid-loan)
State Property Tax
$5,600
TX rate: 1.6%
True Monthly Cost
$2,499
PITI + HOA + maintenance
Buying a Home in Hawaii
Hawaii is the most expensive housing market in the United States by most measures. With an average home price of $835,000, buying a home in the Aloha State requires significant financial preparation. Maui's median home price often exceeds $1 million, and Oahu — home to Honolulu and the majority of the state's population — sits just below that threshold. The Big Island and Kauai offer relatively more affordability, though both still command prices well above national averages.
Despite the eye-watering sticker prices, Hawaii's property tax rate of 0.31% is the lowest in the nation. Owner-occupants qualify for a homeowner exemption that reduces the taxable assessed value, and the county-specific rates are designed to favor permanent residents over investment and vacation properties. This means the annual property tax bill is surprisingly manageable relative to home values.
Hawaii is also a designated high-cost area for federal loan limits, meaning conventional conforming loan limits are roughly $1.15 million — allowing many buyers to access conventional financing rather than jumbo products. Buyers should be aware of the leasehold vs. fee simple distinction: fee simple (full land ownership) properties are standard and preferred, while leasehold properties can complicate financing and long-term ownership.
Key Housing Facts for Hawaii
Average home price: $835,000
Average effective property tax rate: 0.31% (lowest in the US)
Average homeowners insurance: $1,200/year
High-cost area conforming loan limit: ~$1,209,750
Most expensive markets: Maui, Honolulu, Kauai
More affordable (relatively): Hilo, Kona, East Oahu suburbs
Frequently Asked Questions
Hawaii has the lowest effective property tax rate in the nation at approximately 0.31%. On an $835,000 home, you'd pay roughly $2,589 per year in property taxes. Hawaii classifies properties into categories and applies different rates. Owner-occupants benefit from a homeowner exemption that further reduces the taxable value.
Hawaii Housing Finance and Development Corporation (HHFDC) offers the Hula Mae Single Family program with below-market interest rates for first-time buyers. Down payment assistance is available through the HHFDC Dwelling Unit Revolving Fund. The federal HomeReady and Home Possible programs are also popular given Hawaii's high-cost designation, allowing higher loan limits.
Because Hawaii is a designated high-cost area, conforming loan limits are higher than the national baseline. For 2026, the conventional conforming loan limit for most Hawaii counties is $1,209,750 for a single-family home. This means many buyers can use conventional financing rather than jumbo loans even at Hawaii's high price points.
Hawaii's housing market is constrained by limited land, strict zoning laws, and strong demand from both local residents and mainland investors. Fee simple (owned land) properties are more desirable than leasehold properties, where you own the structure but lease the land — leasehold mortgages can be difficult to obtain. Oahu, particularly Honolulu, dominates the market, while Maui commands the highest prices overall.