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BOH final
- 1. Millennial Milestones: First TimeHome Buying Connor Barfield, Joyce Cebricos, Sara Teixeira, Aaron Yanagi, Kailee Yogi
- 2. 2 Overview Problem Statistics Solution Benefit to Bankof Hawaii Internship Experience
- 3. Problem College students don'tthink 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 tooexpensive 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 aDisadvantage 5 Problem Statistics Solution Benefit to BOH Internship Experience 3rd 1st 22nd
- 6. Hawaii At aDisadvantage 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
- 7. Oahu Prices 7 Hawaii Kai: Mililani: $344k Kailua: $383k Aiea:$363k National Average: $147k Problem Statistics Solution Benefit to BOH Internship Experience
- 8. Mortgage Payment vsRent 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 RentingPros • 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 Benefitto 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 vsRent 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 of7/26/16 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 forMortgage 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
- 14. Other Alternatives 14 Problem Statistics Solution Benefit toBOH Internship Experience Gift OptionMay Vary
- 15. Profile Problem Statistics Solution Benefit to BOH InternshipExperience 15 Dave Harauchi Graduated in May from UH Manoa Business Major $50,000 salary Looking for a two bedroom condo Hasn’t started saving, no knowledge
- 16. Phases 16 Problem Statistics Solution Benefit to BOH InternshipExperience Phase 1 • Saving Money and Building Credit Phase 2 • Start Career Phase 3 • Begin Home Buying Process
- 17. Phase 1- SavingMoney and Building Credit 17 Problem Statistics Solution Benefit to BOH Internship Experience
- 18. Phase 1- SavingMoney and Building Credit 18 Problem Statistics Solution Benefit to BOH Internship Experience
- 19. Building Credit 19 5 C'sof Credit Character Capacity CapitalCollateral Conditions Problem Statistics Solution Benefit to BOH Internship Experience
- 20. Phase 1- FICOCredit 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- StartCareer 21 Problem Statistics Solution Benefit to BOH Internship Experience
- 22. Phase 2- StartCareer 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- BeginHome Buying Process 23 Problem Statistics Solution Benefit to BOH Internship Experience
- 24. Phase 3- BeginHome 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
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- 26. Survey 26 Problem Statistics Solution Benefit to BOH InternshipExperience 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)
- 27. Buzz Feed 27 Problem Statistics Solution Benefit toBOH Internship Experience
- 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
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- 31. Website 31 Problem Statistics Solution Benefit to BOH InternshipExperience BOH Website Set Goals Budget Money Stay On Track
- 32. Website- Benefit 32 Problem Statistics Solution Benefit toBOH Internship Experience Appeals to Millennials Provide Tools and Resources Utilize Their Knowledge
- 33. How to Market SocialMedia 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 Bankof Hawaii More Business & Sales Pipeline Public Relations Better for Community, Better for Hawaii Problem Statistics Solution Benefit to BOH Internship Experience 34
- 35. Benefit to Millennials 35 Problem Statistics Solution Benefitto BOH Internship Experience
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- 37. Our Internship Experiences 37 Problem Statistics Solution Benefitto BOH Internship Experience Intern Cohort Rotation Experience Branch Experience
- 38. Intern Cohort 38 Problem Statistics Solution Benefit toBOH Internship Experience
- 39. Rotation Experience • Connorand Aaron didn’t do their slides yet………. 39 Problem Statistics Solution Benefit to BOH Internship Experience
- 40. Branch Experience 40 Problem Statistics Solution Benefit toBOH Internship Experience Main Branch Kahului Branch Waikiki Branch Kahala Branch
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