Your $1M–$1.5M purchase, by the numbers
How your down payment shapes the monthly payment, what you'll need at closing, and whether a seller credit does more for you as a lower interest rate or a lower price. Every figure below is an illustration built on today's market. Your lender's Loan Estimate is the final word.
The assumptions behind every number
Change any of these in the calculator at the bottom of the page. Each one moves the payment, so ask your lender for your own.
| Input | Used here | Where it comes from |
|---|---|---|
| Interest rate | 7.125% | Freddie Mac's national 30-year average was 7.32% on Oct 22, 2026. Local Hawaiʻi lenders were posting roughly 6.75%–7.00% with some points paid. Your rate depends on credit, loan size and lock date. |
| Property tax | $3.50 / $1,000 | Honolulu Residential rate for July 2026–June 2027, after the $120,000 home exemption (owners under 65). Assessed value assumed equal to price. |
| Homeowners + hurricane insurance | $250 / mo | Placeholder for a single-family home. Flood insurance, if required, is extra. Condos use an HO-6 policy plus HOA dues instead. |
| Mortgage insurance (PMI) | 0.40% / yr | Only with less than 20% down. Typical range at 90% loan-to-value is about 0.30%–0.60% a year, depending mostly on credit score. |
| Discount points | 1 pt ≈ 0.25% | One point costs 1% of the loan amount. The rate it buys varies by lender and by day; 0.25% per point is a common rule of thumb. |
| HOA / maintenance fee | $0 | Add your building's fee in the calculator if you're looking at condos or a planned community. |
How your down payment changes the monthly payment
Total monthly payment: principal & interest, mortgage insurance if any, property tax and insurance. Every extra 10% down on a $1.2M home lowers the payment by roughly $1,000 a month.
| Purchase price | 10% down | 20% down | 30% down |
|---|---|---|---|
| $1,000,000 | $6,870High-bal.P&I $6,063 · PMI $300 · loan $900,000 | $5,896P&I $5,390 · loan $800,000 | $5,223P&I $4,716 · loan $700,000 |
| $1,100,000 | $7,536High-bal.P&I $6,670 · PMI $330 · loan $990,000 | $6,465High-bal.P&I $5,929 · loan $880,000 | $5,723P&I $5,188 · loan $770,000 |
| $1,200,000 | $8,201High-bal.P&I $7,276 · PMI $360 · loan $1,080,000 | $7,033High-bal.P&I $6,468 · loan $960,000 | $6,224High-bal.P&I $5,659 · loan $840,000 |
| $1,300,000 | $8,867High-bal.P&I $7,883 · PMI $390 · loan $1,170,000 | $7,601High-bal.P&I $7,007 · loan $1,040,000 | $6,725High-bal.P&I $6,131 · loan $910,000 |
| $1,400,000 | $9,532JumboP&I $8,489 · PMI $420 · loan $1,260,000 | $8,169High-bal.P&I $7,546 · loan $1,120,000 | $7,226High-bal.P&I $6,602 · loan $980,000 |
| $1,500,000 | $10,198JumboP&I $9,095 · PMI $450 · loan $1,350,000 | $8,737High-bal.P&I $8,085 · loan $1,200,000 | $7,727High-bal.P&I $7,074 · loan $1,050,000 |
The 20% line
Below 20% down, conventional loans add private mortgage insurance (PMI). It protects the lender, not you, and it can come off once your balance reaches 80% of the original value (it ends automatically at 78%).
The conforming limit
Honolulu's 2026 limit for a Fannie Mae / Freddie Mac loan is $1,249,125. Loans above it are "jumbo" loans with their own rules. At 10% down, any price above about $1,387,900 crosses that line. Jumbo
High-balance pricing
Loans between $832,750 and $1,249,125 are "high-balance" conforming loans. They follow the same rules, but some lenders price them slightly higher. High-bal.
What you'll need at closing
Cash to close is your down payment plus closing costs plus prepaid items. Your earnest money deposit counts toward it; it isn't extra money.
| Purchase price | 10% down | 20% down | 30% down |
|---|---|---|---|
| $1,000,000 | $112,405down $100,000 · costs $6,000 · prepaids $6,405 | $212,112down $200,000 · costs $6,000 · prepaids $6,112 | $311,820down $300,000 · costs $6,000 · prepaids $5,820 |
| $1,100,000 | $123,006down $110,000 · costs $6,250 · prepaids $6,756 | $232,684down $220,000 · costs $6,250 · prepaids $6,434 | $342,362down $330,000 · costs $6,250 · prepaids $6,112 |
| $1,200,000 | $133,607down $120,000 · costs $6,500 · prepaids $7,107 | $253,256down $240,000 · costs $6,500 · prepaids $6,756 | $372,905down $360,000 · costs $6,500 · prepaids $6,405 |
| $1,300,000 | $144,208down $130,000 · costs $6,750 · prepaids $7,458 | $273,828down $260,000 · costs $6,750 · prepaids $7,078 | $403,447down $390,000 · costs $6,750 · prepaids $6,697 |
| $1,400,000 | $154,809down $140,000 · costs $7,000 · prepaids $7,809 | $294,399down $280,000 · costs $7,000 · prepaids $7,399 | $433,990down $420,000 · costs $7,000 · prepaids $6,990 |
| $1,500,000 | $165,410down $150,000 · costs $7,250 · prepaids $8,160 | $314,971down $300,000 · costs $7,250 · prepaids $7,721 | $464,532down $450,000 · costs $7,250 · prepaids $7,282 |
Closing costs ≈ 0.5–0.6% of price
Lender fees and appraisal, your half of the escrow fee, your share of title insurance plus the lender's title policy, and recording and notary fees. Estimated here as $3,500 + 0.25% of price.
Prepaid items
A year of homeowners insurance up front, a few months of property tax to start your escrow (impound) account, and interest from closing day to month-end. Estimated here as 12 months insurance, 3 months tax and 15 days interest.
Hawaiʻi customs that help buyers
Under the standard Hawaiʻi Realtors® purchase contract, the seller customarily pays the conveyance tax and 60% of standard title insurance, and the escrow fee is split 50/50. Everything is negotiable, and escrow companies differ.
Seller credits and points, in plain English
Two terms come up in almost every negotiation in this price range.
Seller credit
Money the seller agrees to put toward your costs at closing, written into the purchase contract. On a $1.2M home, a 2% credit is $24,000.
Discount point
Interest you prepay at closing to get a lower rate for the life of the loan. One point is 1% of the loan amount. On a $960,000 loan, one point is $9,600.
Rate buydown
Using money (yours or the seller's) to buy points. A seller credit can pay for points, so the seller is effectively lowering your rate.
| Your down payment | Loan-to-value | Max seller credit* | On a $1.2M home |
|---|---|---|---|
| 10% | 90% | 6% | up to $72,000 |
| 20% | 80% | 6% | up to $72,000 |
| 30% | 70% | 9% | up to $108,000 |
*Fannie Mae and Freddie Mac limits on "interested party contributions" for a primary residence or second home. Investment property: 2%. Jumbo loans set their own limits, often lower, so confirm with the lender.
Credit toward your rate, or off the price?
The same seller dollars, used two ways. A rate buydown lowers the payment far more each month. A price cut saves you cash on the down payment and leaves you a smaller loan.
10% down
| Price · credit | Credit $ | No credit | Buydown rate | As buydown | As price cut | Buydown saves vs. price cut | Price cut saves at closing |
|---|---|---|---|---|---|---|---|
| $1,000,000High-bal. · 1% | $10,000 | $6,870 | 6.847%1.11 pts | $6,702 | $6,804 | $101/mo | $1,060 |
| ↳ 2% | $20,000 | $6,870 | 6.569%2.22 pts | $6,536 | $6,737 | $201/mo | $2,120 |
| ↳ 3% | $30,000 | $6,870 | 6.292%3.33 pts | $6,373 | $6,670 | $298/mo | $3,180 |
| ↳ 4% | $40,000 | $6,870 | 6.014%4.44 pts | $6,211 | $6,604 | $393/mo | $4,240 |
| $1,100,000High-bal. · 1% | $11,000 | $7,536 | 6.847%1.11 pts | $7,351 | $7,462 | $111/mo | $1,166 |
| ↳ 2% | $22,000 | $7,536 | 6.569%2.22 pts | $7,169 | $7,389 | $221/mo | $2,332 |
| ↳ 3% | $33,000 | $7,536 | 6.292%3.33 pts | $6,988 | $7,316 | $328/mo | $3,498 |
| ↳ 4% | $44,000 | $7,536 | 6.014%4.44 pts | $6,810 | $7,243 | $433/mo | $4,664 |
| $1,200,000High-bal. · 1% | $12,000 | $8,201 | 6.847%1.11 pts | $8,000 | $8,121 | $122/mo | $1,272 |
| ↳ 2% | $24,000 | $8,201 | 6.569%2.22 pts | $7,801 | $8,041 | $241/mo | $2,544 |
| ↳ 3% | $36,000 | $8,201 | 6.292%3.33 pts | $7,604 | $7,962 | $358/mo | $3,816 |
| ↳ 4% | $48,000 | $8,201 | 6.014%4.44 pts | $7,410 | $7,882 | $472/mo | $5,088 |
| $1,300,000High-bal. · 1% | $13,000 | $8,867 | 6.847%1.11 pts | $8,649 | $8,780 | $132/mo | $1,378 |
| ↳ 2% | $26,000 | $8,867 | 6.569%2.22 pts | $8,433 | $8,694 | $261/mo | $2,756 |
| ↳ 3% | $39,000 | $8,867 | 6.292%3.33 pts | $8,220 | $8,607 | $387/mo | $4,134 |
| ↳ 4% | $52,000 | $8,867 | 6.014%4.44 pts | $8,009 | $8,521 | $511/mo | $5,513 |
| $1,400,000Jumbo · 1% | $14,000 | $9,532 | 6.847%1.11 pts | $9,297 | $9,439 | $142/mo | $1,484 |
| ↳ 2% | $28,000 | $9,532 | 6.569%2.22 pts | $9,065 | $9,346 | $281/mo | $2,968 |
| ↳ 3% | $42,000 | $9,532 | 6.292%3.33 pts | $8,836 | $9,253 | $417/mo | $4,452 |
| ↳ 4% | $56,000 | $9,532 | 6.014%4.44 pts | $8,609 | $9,159 | $551/mo | $5,937 |
| $1,500,000Jumbo · 1% | $15,000 | $10,198 | 6.847%1.11 pts | $9,946 | $10,098 | $152/mo | $1,590 |
| ↳ 2% | $30,000 | $10,198 | 6.569%2.22 pts | $9,697 | $9,998 | $301/mo | $3,180 |
| ↳ 3% | $45,000 | $10,198 | 6.292%3.33 pts | $9,451 | $9,898 | $447/mo | $4,770 |
| ↳ 4% | $60,000 | $10,198 | 6.014%4.44 pts | $9,208 | $9,798 | $590/mo | $6,361 |
20% down
| Price · credit | Credit $ | No credit | Buydown rate | As buydown | As price cut | Buydown saves vs. price cut | Price cut saves at closing |
|---|---|---|---|---|---|---|---|
| $1,000,000 · 1% | $10,000 | $5,896 | 6.813%1.25 pts | $5,729 | $5,840 | $111/mo | $2,057 |
| ↳ 2% | $20,000 | $5,896 | 6.500%2.50 pts | $5,563 | $5,783 | $220/mo | $4,114 |
| ↳ 3% | $30,000 | $5,896 | 6.188%3.75 pts | $5,400 | $5,726 | $326/mo | $6,172 |
| ↳ 4% | $40,000 | $5,896 | 5.875%5.00 pts | $5,239 | $5,669 | $430/mo | $8,229 |
| $1,100,000High-bal. · 1% | $11,000 | $6,465 | 6.813%1.25 pts | $6,280 | $6,402 | $122/mo | $2,263 |
| ↳ 2% | $22,000 | $6,465 | 6.500%2.50 pts | $6,098 | $6,340 | $242/mo | $4,526 |
| ↳ 3% | $33,000 | $6,465 | 6.188%3.75 pts | $5,918 | $6,277 | $359/mo | $6,789 |
| ↳ 4% | $44,000 | $6,465 | 5.875%5.00 pts | $5,741 | $6,215 | $473/mo | $9,052 |
| $1,200,000High-bal. · 1% | $12,000 | $7,033 | 6.813%1.25 pts | $6,831 | $6,965 | $133/mo | $2,469 |
| ↳ 2% | $24,000 | $7,033 | 6.500%2.50 pts | $6,633 | $6,896 | $263/mo | $4,937 |
| ↳ 3% | $36,000 | $7,033 | 6.188%3.75 pts | $6,437 | $6,828 | $391/mo | $7,406 |
| ↳ 4% | $48,000 | $7,033 | 5.875%5.00 pts | $6,244 | $6,760 | $516/mo | $9,874 |
| $1,300,000High-bal. · 1% | $13,000 | $7,601 | 6.813%1.25 pts | $7,383 | $7,527 | $144/mo | $2,674 |
| ↳ 2% | $26,000 | $7,601 | 6.500%2.50 pts | $7,168 | $7,453 | $285/mo | $5,349 |
| ↳ 3% | $39,000 | $7,601 | 6.188%3.75 pts | $6,955 | $7,379 | $424/mo | $8,023 |
| ↳ 4% | $52,000 | $7,601 | 5.875%5.00 pts | $6,746 | $7,305 | $559/mo | $10,697 |
| $1,400,000High-bal. · 1% | $14,000 | $8,169 | 6.813%1.25 pts | $7,934 | $8,089 | $155/mo | $2,880 |
| ↳ 2% | $28,000 | $8,169 | 6.500%2.50 pts | $7,702 | $8,010 | $307/mo | $5,760 |
| ↳ 3% | $42,000 | $8,169 | 6.188%3.75 pts | $7,474 | $7,930 | $456/mo | $8,640 |
| ↳ 4% | $56,000 | $8,169 | 5.875%5.00 pts | $7,249 | $7,851 | $602/mo | $11,520 |
| $1,500,000High-bal. · 1% | $15,000 | $8,737 | 6.813%1.25 pts | $8,486 | $8,652 | $166/mo | $3,086 |
| ↳ 2% | $30,000 | $8,737 | 6.500%2.50 pts | $8,237 | $8,567 | $329/mo | $6,172 |
| ↳ 3% | $45,000 | $8,737 | 6.188%3.75 pts | $7,992 | $8,481 | $489/mo | $9,257 |
| ↳ 4% | $60,000 | $8,737 | 5.875%5.00 pts | $7,751 | $8,396 | $645/mo | $12,343 |
30% down
| Price · credit | Credit $ | No credit | Buydown rate | As buydown | As price cut | Buydown saves vs. price cut | Price cut saves at closing |
|---|---|---|---|---|---|---|---|
| $1,000,000 · 1% | $10,000 | $5,223 | 6.768%1.43 pts | $5,055 | $5,173 | $117/mo | $3,054 |
| ↳ 2% | $20,000 | $5,223 | 6.411%2.86 pts | $4,890 | $5,123 | $232/mo | $6,108 |
| ↳ 3% | $30,000 | $5,223 | 6.054%4.29 pts | $4,728 | $5,072 | $345/mo | $9,163 |
| ↳ 4% | $40,000 | $5,223 | 5.696%5.71 pts | $4,568 | $5,022 | $455/mo | $12,217 |
| $1,100,000 · 1% | $11,000 | $5,723 | 6.768%1.43 pts | $5,539 | $5,668 | $129/mo | $3,360 |
| ↳ 2% | $22,000 | $5,723 | 6.411%2.86 pts | $5,358 | $5,613 | $256/mo | $6,719 |
| ↳ 3% | $33,000 | $5,723 | 6.054%4.29 pts | $5,179 | $5,558 | $379/mo | $10,079 |
| ↳ 4% | $44,000 | $5,723 | 5.696%5.71 pts | $5,003 | $5,503 | $500/mo | $13,439 |
| $1,200,000High-bal. · 1% | $12,000 | $6,224 | 6.768%1.43 pts | $6,023 | $6,164 | $141/mo | $3,665 |
| ↳ 2% | $24,000 | $6,224 | 6.411%2.86 pts | $5,825 | $6,104 | $279/mo | $7,330 |
| ↳ 3% | $36,000 | $6,224 | 6.054%4.29 pts | $5,630 | $6,044 | $414/mo | $10,995 |
| ↳ 4% | $48,000 | $6,224 | 5.696%5.71 pts | $5,438 | $5,984 | $545/mo | $14,660 |
| $1,300,000High-bal. · 1% | $13,000 | $6,725 | 6.768%1.43 pts | $6,507 | $6,660 | $153/mo | $3,971 |
| ↳ 2% | $26,000 | $6,725 | 6.411%2.86 pts | $6,293 | $6,595 | $302/mo | $7,941 |
| ↳ 3% | $39,000 | $6,725 | 6.054%4.29 pts | $6,081 | $6,530 | $448/mo | $11,912 |
| ↳ 4% | $52,000 | $6,725 | 5.696%5.71 pts | $5,874 | $6,465 | $591/mo | $15,882 |
| $1,400,000High-bal. · 1% | $14,000 | $7,226 | 6.768%1.43 pts | $6,991 | $7,156 | $164/mo | $4,276 |
| ↳ 2% | $28,000 | $7,226 | 6.411%2.86 pts | $6,760 | $7,086 | $325/mo | $8,552 |
| ↳ 3% | $42,000 | $7,226 | 6.054%4.29 pts | $6,533 | $7,015 | $483/mo | $12,828 |
| ↳ 4% | $56,000 | $7,226 | 5.696%5.71 pts | $6,309 | $6,945 | $636/mo | $17,104 |
| $1,500,000High-bal. · 1% | $15,000 | $7,727 | 6.768%1.43 pts | $7,475 | $7,651 | $176/mo | $4,581 |
| ↳ 2% | $30,000 | $7,727 | 6.411%2.86 pts | $7,228 | $7,576 | $349/mo | $9,163 |
| ↳ 3% | $45,000 | $7,727 | 6.054%4.29 pts | $6,984 | $7,501 | $517/mo | $13,744 |
| ↳ 4% | $60,000 | $7,727 | 5.696%5.71 pts | $6,744 | $7,426 | $682/mo | $18,325 |
Which comes out ahead, and when
Example: $1.2M home, 20% down, 2% credit ($24,000). The buydown lowers the payment by $263/mo more than the price cut, but the price cut leaves you $24,000 better off on day one (smaller loan plus less cash down). The buydown catches up after about 5.3 years and pulls ahead from there.
Choose the buydown if…
You expect to keep this loan five years or more and want the lowest payment. With rates above 7%, also weigh the chance you'll refinance if rates fall, since the points are spent once you do.
Choose the price cut if…
You may sell or refinance within about five years, or want to keep more cash at closing. A lower price also lowers property tax slightly and starts you with more equity.
Or split it
Most buyers aim the credit at closing costs first, then put what's left toward points. That lowers both your cash to close and your rate. Lenders may cap how many points you can buy.
Try your own numbers
Set the price, down payment and credit you're considering. The four options use the same seller dollars so you can compare them side by side.
No credit
Rate buydown
Price cut
Closing-cost credit
The buydown saves $263/mo more than the price cut. The price cut starts you about $24,000 ahead (lower loan and $4,937 less cash down). Keep the loan longer than 5.3 years and the buydown wins.
Next step: a real number from a real lender
A pre-approval turns these illustrations into your actual rate, your PMI quote and your exact cash to close. Ask your lender for a Loan Estimate showing at least two point options. I'm happy to connect you with Hawaiʻi lenders I trust and help structure the credit in your offer. Mahalo for letting me guide you.
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