Home Equity Loan Rates in Hawaii

The equity in your home that you can access and borrow is known as tappable equity. A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

Hawaii's home equity loan rates are above national averages for 10-year terms and below for 15-year terms — 7.8% APR for both terms, compared to 7.7% and 7.9% nationally. We've compiled detailed insights on current home equity loan rates in Hawaii, including city-specific rates, top lenders and tips on securing the best rates for using your home's equity.

Key Takeaways

blueCheck icon

Higher LTV ratios lead to higher rates. The average APR for a 15-year HEL in Hawaii with an 80% LTV is 7.6%, compared to 8.0% for a 90% LTV.

blueCheck icon

HEL rates vary by city in Hawaii. For example, for 15-year loans, Kailua-Kona has an average APR of 7.0%, whereas Kailua's is 8.0%.

blueCheck icon

Different lenders offer varying rates for the same loan types. HFS Federal Credit Union's average APR is 7.0%, whereas Operating Engineers Local Union #3 Federal Credit Union is 8.3%.

MoneyGeek examined four different banks and credit unions in Hawaii using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity loan rates.

recency icon

This data is accurate as of November 2024.

4Lenders Analyzed

Current Home Equity Loan Rates in Hawaii

The current average APR for a 15-year home equity loan in Hawaii is 7.8%, but several factors might affect what lenders offer you. For instance, having a higher credit score typically results in a lower APR, whereas a larger loan amount might lead to a higher rate. Another important consideration is the repayment terms you choose. Check out the table below to compare the average APRs of home equity loans in Hawaii across different loan terms.

10Year7.8%
15Year7.8%
5Year7.6%

Interest rates for home equity loans change daily. Keeping track of these rates can save you money by reducing interest payments over the life of the loan and help you accurately plan your budget and future expenses.

For example, a 15-year home equity loan with a 7.8% APR has a monthly payment of $472 and a total interest of $34,973. In contrast, a 10-year loan with the same 7.8% APR has a monthly cost of $601 and a total interest of $22,164. Monitoring these rates allows you to make informed financial decisions.

loanVsLoan icon
HOME EQUITY LOANS VS. HELOCS IN HAWAII

Home equity loans and home equity lines of credit (HELOC) are popular options for homeowners to tap into their home's equity. In Hawaii, home equity loan rates average 7.7%, while HELOC rates are variable, averaging 8.5%. Home equity loans have fixed rates, providing stability, whereas HELOCs have fluctuating variable rates.

Fixed rates mean your monthly payments remain consistent, offering predictability in budgeting. With HELOC rates in Hawaii being variable, your payments may start lower but could increase over time, impacting your financial planning. Understanding the differences between home equity loans and HELOCs helps you choose the right option for your financial situation.

Home Equity Loan Rates by LTV Ratio

The rate you qualify for depends on your loan-to-value ratio, which is a measure of how much you owe on your mortgage compared to your home's appraised value. To calculate your LTV ratio, divide your current mortgage balance by your home's appraised value and multiply by 100. For instance, if your home is valued at $300,000 and you owe $240,000 on your mortgage, your LTV ratio is 80%.

A higher LTV ratio means greater potential risk to lenders, resulting in higher rates. Currently, the average APR of a 15-year equity loan in Hawaii with an LTV ratio of 80% is 7.6%, compared to 8.0% for an LTV ratio of 90%. Use the table to see what average home equity loan rates you might qualify for based on your LTV ratio.

Data filtered by:Results filtered by:
Repayment Terms:
Repayment Terms:10Year
7.6%8.0%

Home Equity Loan Rates by City in Hawaii

Average APRs also vary between cities in Hawaii. Cities with higher home values or rapid appreciation often have lower rates because the loans are seen as less risky. Cities with higher living costs may also see slightly higher rates as lenders face increased operational expenses.

In Hawaii, Kailua-Kona has an average APR of 7.0%, while Kapolei has an average APR of 7.9%. Explore our table to see the average home equity loan rates for various terms across Hawaiian cities.

Data filtered by:Results filtered by:
City:
City:Honolulu
10Year7.7%
15Year7.7%
5Year7.3%

Home Equity Loan Lenders in Hawaii

Home equity loan rates in Hawaii vary significantly between lenders, influenced by each lender's policies and market strategies. For example, HFS Federal Credit Union offers the lowest average APR at 7.0%, while Operating Engineers Local Union #3 Federal Credit Union has the highest at 8.3%.

Comparing rates and terms from different lenders is the best way to secure the lowest home equity loan rate. Explore the interactive table to see which lenders offer the lowest rates in your city.

Data filtered by:Results filtered by:
City:
City:Honolulu
Hickam Federal Credit Union7.5%
Navy Federal Credit Union7.6%
vs icon
COMPARING HOME EQUITY LOAN RATES: BANKS VS. CREDIT UNIONS

Including credit unions in your lender options can be beneficial due to their competitive rates. In Hawaii, credit unions offer an average APR of 7.7% for home equity loan rates. While specific data for commercial banks isn't provided, they typically have higher rates. Be aware that credit unions may have stricter membership requirements. Consider these factors to make an informed decision.

How to Get the Best Home Equity Loan Rate in Hawaii

Getting the best possible home equity interest rates can lead to lower monthly payments and reduced overall costs, enhancing your borrowing experience and freeing up funds for other financial goals. Imagine saving hundreds monthly by securing a favorable rate. To achieve the best home equity loan rates in Hawaii, consider these strategies:

    bank icon

    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. HFS Federal Credit Union provides an average APR of 7.0%, while Operating Engineers Local Union #3 Federal Credit Union offers 8.3%. Comparing different home equity loan lenders in Hawaii can help you find better rates.

    house2 icon

    Increase your home's equity

    Having more equity in your home can result in more competitive rates from lenders. Hawaii homeowners can increase their equity by adding outdoor kitchens or lanai enhancements.

    excellentCredit icon

    Improve your credit score

    Increasing your credit score can lead to more competitive home equity loan rates. Pay bills on time and reduce credit card debt to improve your credit score. The average credit score in Hawaii is 732, according to Experian.

    discount icon

    Decrease debt-to-income ratio

    A lower debt-to-income (DTI) ratio — the percentage of your monthly income that goes toward paying debts — can lead to better rates as lenders see you as a less risky borrower.

cash

Debt-to-Income Ratio Calculator

Provide your income and recurring payments to calculate your DTI.

Monthly Income Before Taxes

$

Recurring Monthly Debts

Enter all applicable payments to ensure accurate results.

$
$
$
$
$

FAQ About Home Equity Loan Rates in Hawaii

MoneyGeek answers common questions about home equity loan rates for homeowners in Hawaii, offering precise and reliable information. By addressing specific concerns, MoneyGeek ensures residents have the knowledge to navigate their home financing options confidently.

What is the interest rate on a home equity loan in Hawaii?

How do you calculate your home equity in Hawaii?

Do home equity loan rates vary between cities in Hawaii?

Does a home equity loan in Hawaii have tax benefits?

What are the possible drawbacks of securing a home equity loan in Hawaii?

How long does it take to get a home equity loan in Hawaii?

How do you get a home equity loan in Hawaii?

What can I use my funds for? Are there any home equity loan use restrictions in Hawaii?

Can you only take out a home equity loan in Hawaii on your primary residence?

What other home equity products can you consider if you want to tap into your home's equity in Hawaii?

What's the difference between a HELOC and a home equity loan?

About Zachary Romeo, CBCA


Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.


sources