3. Problem
College students don't think about mortgage and lack
information and knowledge of what to do or where to start.
Solution
Provide recent graduates with the resources, knowledge,
and support in order to plan for buying a home.
Problem & Solution
Problem
Statistics
Solution
Benefit to BOH
Internship Experience 3
4. Significance
4
“It is too expensive to live here in Hawaii and there aren’t
many good opportunities, you have to move to the
Mainland.”
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
5. Hawaii At a Disadvantage
5
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
3rd 1st
22nd
6. Hawaii At a Disadvantage
6
Honolulu, Hawaii
• $431,000
Seattle, Washington
• $313,300
New York City, New York
• $263,400
Phoenix, Arizona
• $172,800
Pittsburgh, Pennsylvania
• $85,500
Seattle, Washington
• $36 ,854
New York City, New York
• $35,896
Pittsburgh, Pennsylvania
• $30,780
Honolulu, Hawaii
• $30,366
Phoenix, Arizona
• $19,833
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
1
2
3
4
5
1
2
3
4
5
8. Mortgage Payment vs Rent Payment
8
Rent Payments
• Not fixed payment
• Median 2-Bedroom Condo
Payment:$1,448.00
Mortgage Payments
• Condo Price: $431,200
• 20% Down: $86,240
• Loan Amount: $344,960
• Interest Rate: 3.25%
• Length: 30 year
• Payment: $1,501.29
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
9. Renting vs Owning
Renting Pros
• No down payment
• No maintenance
expenses
• No property tax
• Not 100%
committed to the
property
Renting Cons
• Risk of increase in
rent
• No equity
Problem
Statistics
Solution
Benefit to BOH
Internship Experience 9
10. 10
Renting vs Owning
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
Owning Pros
•Build equity
•Pride of home-
ownership
•Freedom to do
what you want on
your own property
Owning Cons
• High cost of
ownership
11. Mortgage Payment vs Rent Payment
11
Rent Payments
• No fixed payment
• Median 2-Bedroom Condo
• Payment: $1,448.00
Mortgage Payments
• Condo Price: $431,200
• 20% Down: $86,240
• Loan Amount: $344,960
• Interest Rate: 3.25%
• Length: 30 year
• Payment: $1,501.29
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
12. 12
APR as of 7/26/16
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
Citi 3.710%
Bank of America 3.685%
Wells Fargo 3.684%
Chase 3.466%
CPB 3.431%
First Hawaiian 3.430%
BOH 3.411%
13. Monthly Payments for Mortgage
13
20% Down
Payment
Condo Price: $431,200
Down Payment: $86,420
Loan Amount: $344,960
Interest Rate: 3.25%
Monthly Payment: $1,501
10% Down
Payment
Condo Price: $431,200
Down Payment: $43,120
Loan Amount: $388,080
Interest Rate: 3.375%
Monthly Payment: $1,716
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
17. Phase 1- Saving Money and Building Credit
17
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
18. Phase 1- Saving Money and Building Credit
18
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
19. Building Credit
19
5 C's of
Credit
Character
Capacity
CapitalCollateral
Conditions
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
20. Phase 1- FICO Credit Score
20
FICO
Credit
Payment
History
Amounts
Owed
Length of
History
New
Credit
Types of
Credit
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
21. Phase 2- Start Career
21
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
22. Phase 2- Start Career
22
– Bonus rate savings plus
– Open another credit card (mileage) establish more credit
– Mortgage seminars, free meeting with mortgage officer
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
23. Phase 3- Begin Home Buying Process
23
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
24. Phase 3- Begin Home Buying Process
24
– Pre-approval pre-qualified
– Setting aside money for down payment
– Setting budget of house
– Figuring out location of house
– Meeting with loan officer figuring out unforeseen cost
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
26. Survey
26
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
68% had little to no knowledge about mortgages
84% would download a mortgage app
98% will find it somewhat to very helpful
62% would use the app once or more a month
Feedback: video tutorials, monthly payment calendar,
budget/ money management planner
(100 people surveyed)
28. Purpose of App
28
Features:
• Videos
• Newsroom/
Search
• Messages
• Profile
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
29. Perks of App
29
• Only shows budget planner if a Bank of Hawaii member
Able to reach everyone
• Active User for 4 years
Lower Points
• New Videos
• Time for Next Phase
Notifications
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
33. How to Market
Social Media and Alternative Channels
• Expand potential market
FiNAP Current customers
• Understand current and future needs
College Campuses
• Reach target market
33
Problem
Statistics
Solution
Benefit to BOH
Internship Experience
34. Benefit to Bank of Hawaii
More
Business &
Sales
Pipeline
Public
Relations
Better for
Community,
Better for
Hawaii
Problem
Statistics
Solution
Benefit to BOH
Internship Experience 34
