Assuming your facts are right, it depends. Where do you expect to be in the next 7 years? If you are confident you will have sold the home by then, it might make sense. You say, "no points" but that does not have universal meaning. If you mean, no discount points, than you will still be paying closing costs, i.e. title, escrow, appraisal and perhaps a 1 point origination fee among other fees.
The critical questions are; What are the costs, how fast will you recoup them and how long will you live there?
Have you comparison shopped. On the mainland rates under 5% are not uncommon for 30 year fixed loans up to 417,000, and in the low 5% range for loans up to $567,500. Terms may be different in Hawaii, but I would get a couple of Good Faith Estimates before proceeding if the rest of it makes sense.
Best of luck.... more