The Kilauea volcano continues to spew lava, prompting Hawaii's governor to declare a state of emergency and the evacuation of thousands of residents. Several residential communities remain at risk of damage. This is just the latest crisis in the state. Last January a false alert of an incoming ballistic missile attack from North Korea sent residents and tourists into a panic.
Living in the Hawaiian Islands with its tropical weather and world renewed beaches is worth a little risk according to many of the Aloha State's residents. Purchasing a home in a subdivision near a volcano can often come with steep discounts. Although median single-family home prices in April were near or above $750,000 in Oahu and Maui, a 1-acre lot at Leilani Estates near Kilauea volcano goes for around $20,000.
While insurance companies do not provide lava coverage, many homeowners can utilize their homes fire insurance policy should any damage occur.
Today, conforming no-point 30-year fixed mortgage rates are averaging 4.625 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.25 percent.
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