Page 4 Friday, June 5, 2020
THE GARDEN ISLAND
www.thegardenisland.com
Got House?
Julie Black, Principal Broker & Owner (808) 652-6174 with daughter Kela Caspillo, Realtor Sales Person (808) 652-6173 kauaidreams.com
Featured Homes
Kapaa Henriques Estate #5 A rare opportunity to purchase over an acre of vacant land, a flag lot zoned R-6, consisting of both flat land & hills with some mature fruit trees. The water meter is already installed. This is a 5-unit Condominium Property Regime (CPR) and the first time sale of this property! MLS #633180; $350,000 Call: Kela Caspillo, RS (808) 6526173 Kauai Dreams Realty, with questions and for showings.
Average 30-year mortgage rates rose slightly to 3.18% ASSOCIATED PRESS BALTIMORE — Long-term mortgage rates increased slightly as the U.S. economy showed signs that the worst of the coronavirus-fueled recession may have passed. The average interest charged on a 30-year mortgage was 3.18% this week, up from 3.15% a week ago, according to a report Thursday by mortgage buyer Freddie Mac. That average is down from 3.82% a year ago. The economic collapse following the COVID-19 outbreak has corresponded with a decline in mortgage rates. But there are signs that the economy may have already bottomed as government data shows that applications for jobless aid — though still historically high — are steadily falling.
US productivity falls in first quarter ASSOCIATED PRESS WASHINGTON — U.S. productivity fell at a 0.9% rate in the first three months of this year, a smaller decline than first estimated, while labor costs rose at a slightly faster pace. The Labor Department reported Thursday that the first-quarter decline in productivity was smaller than the initial estimate a month ago of a 2.5% drop. Labor costs rose at a 5.1% rate, slightly faster than the 4.8% increase first reported. Productivity, the amount of output per hour of work, has lagged over the past decade, a troubling development that economists have been unable to adequately explain. Productivity is the key to rising living standards, and the slow pace of growth in recent years has been a major reason that wage gains have lagged. The revision to the productivity figures followed last week’s revised data on the performance of the gross domestic product, the economy’s total output of goods and services. The government said GDP fell at an annual rate of 5% in the first quarter, slightly worse than the 4.8% decline that was estimated a month ago. While the first-quarter revision in productivity was stronger than many economists had expected, they cautioned that the economic disruptions caused by the coronavirus would likely keep productivity at sub-par levels in coming quarters.
DO THE MATH
Buying a home now may be more affordable and save some cash
BRANDPOINT
At a time when the strength of the U.S. economy and personal finance is on most renters’ minds, low down payment mortgage options are more appealing than ever. With mortgage interest rates being at historic lows, it is possible to qualify for a home loan while keeping a rainy day fund. Private mortgage insurance (MI) has been around for decades and helped over 1.3 million homebuyers last year. It is a temporary cost that allows for a down payment as small as 3% of the purchase price. While some borrowers wait until they save 20% for a down payment, the added years of saving can translate to higher interest rates and more expensive home prices. “Renters who are on the hunt to buy should do the math and consider what is best for them, because many times they will find that buying with a low down payment insured mortgage is in their best interest. It may enable them to attain homeownership sooner than they otherwise could, which helps them take advantage of historic low rates and keep some of their savings intact,” said Lindsey Johnson, President of U.S. Mortgage Insurers (USMI). If you are one of these renters looking to buy your first home but don’t have 20% down, don’t worry, you are not alone. According to the National Association of Realtors, the median down payment in 2019 was 6% for first-time buyers. It is true you can qualify for a
credit score at today’s MI rates, your monthly MI payment would be about $115, which is added to your monthly mortgage payment until the MI can be cancelled. MI typically cancels after five years. With home price appreciation, today’s $275,000 home will likely cost more in the years ahead. How can buying now save This will also have an impact on you money later? Consider you want to purchase the necessary down payment and length of time required to save for a $275,000 home. When you account for closing costs (about 3% it. There are other variables in the equation too, such as interest of the sales price), a 5% down payment is $13,750 versus $63,250 rates. As interest rates rise, so in cash for 20% down. With a 740 too will the cost of mortgage conventional mortgage with a down payment as small as 3% of the purchase price. In today’s market, it could take a family earning the national median income up to 21 years to save 20%, according to calculations by USMI.
financing. Not all MI is the same. Importantly, so-called “FHA Loans” are government-backed loans insured by the Federal Housing Administration versus a private insurer. These mortgages require a slightly higher down payment, the insurance is permanent, and the monthly premiums generally cannot be cancelled. Make sure you do the math. There are many online mortgage calculators that can help. Check out lowdownpaymentfacts.org to learn more.
Hawaiiana Management Company, Ltd. Serving Kauai’s Condo & Community Associations with award-winning service
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awaiiana currently serves nearly 60 residential and commercial associations on the Island of Kauai. Kauai native Sunshine Ruiz Hatto serves as Hawaiiana’s Director of Kauai 2SHUDWLRQV IURP LWV RIŅFH DW WKH .XNXL *URYH Executive Center in Lihue.
Sunshine Ruiz Hatto Director Kauai Operations
• • • •
Serving nearly 60 associations on Kauai 99% retention rate among clients Local (vs. mainland) banking All employees are in Hawaii
BOB WILSON SR. MANAGEMENT EXECUTIVE
LUCY TAYLOR SR. MANAGEMENT EXECUTIVE
KIMBERLY NORTON MANAGEMENT EXECUTIVE
RICHARD ROBERTS MANAGEMENT EXECUTIVE
WHIT VAN BLARGEN MANAGEMENT EXECUTIVE
SANDRA SMITH MANAGEMENT EXECUTIVE
For more information about Hawaiiana’s services, contact Sunshine Ruiz Hatto at 792-0515 or email sunshine@hmcmgt.com.
www.hmcmgt.com HINAHEA LANGI OFFICE MANAGER, SENIOR ADMINISTRATIVE ASSISTANT
RACHELE BURNS ADMINISTRATIVE ASSISTANT
Hawaiiana’s Kauai Properties: Alihi Lani Alii Kai at Hanalei Alii Kai II Aliomanu Estates Apopo Hale Emmalani Court Halaulani Condominium Hale Honu Halelani Village at Puhi Halemalu at Puhi Hanalei Bay Villas Hooluana Condo at Kohea Loa +RRNHQD DW 3XKL Kahala at Poipu Kai Kainani Villas Ka‘iulani of Princeville .DNHOD 0DNDL 2FHDQYLHZ Kalaheo Pali Kai Kalihiwai Ridge Kauai Beach Resort Kauai Beach Resort Association Kawaihau Sports Villa . * (QWHUSULVHV &RQGRPLQLXP .RKHD /RD 0DVWHU $VVRFLDWLRQ .RORD *DUGHQ $SDUWPHQWV Kuhio Shores at Poipu .XNXLĢXOD Lae Nani 0DNDQXL 0DQXDORKD Pali Ke Kua Paliuli 3LNDNH Plantation at Princeville Poipu Crater Poipu Kai Association Poipu Kai Racquet Club Poipu Kai Water Reclamation Poipu Kapili Poipu Sands 3ULQFHYLOOH 0DNDL 5DQFK DW +DOHOHĢD Princeville Sealodge I Puamana 3XKL ,QGXVWULDO 3DUN Pu‘u Po‘a Regency at Poipu Kai Regency Hule‘ia Regency Villas at Poipu Kai Sandpiper Village I The Villas at Poipu Kai Villas at Puali Villas of Kamali’i Villas on the Prince :DLNRPR 6WUHDP 9LOODV Wailua Bay View Waipouli Beach Resort Hawaiiana is “here” and open for business during this uncertain time. Deemed an “essential business,” Hawaiiana is maintaining its regular business hours, KRZHYHU RXU RIŅFH DQG PHHWLQJ URRPV are closed to the public for the time being. Please feel free to contact us via phone or email. You may also visit our website at hmcmgt.com to contact your property management team, ask questions about your bill or receive COVID-19 updates.