Because a HELOC lets you withdraw a variable amount of funds during the draw period, it can be used for different purposes. This includes home improvements, emergencies, education, building credit, business expenses and down payments, to name a few.
HELOC rates in Hawaii range from 0.99% to 18%. Our study found that Bank of America is the overall best HELOC lender in the state due to its incentives and low rates.
Since different lenders have different requirements and offerings, it’s best to shop around first to find a company that best matches your needs before applying for a HELOC.
Home Equity Line of Credit (HELOC) Rates for 2023
The table below provides an overview of rates, requirements as well as other relevant data for various HELOC lenders to help you find the best option for you. MoneyGeek last updated this information in May 2022.
While rates and other features offered by lenders may change with time, we regularly update the table to keep the data relevant.
Lender | APR | Loan Amount | Min. Credit Score Requirement | Repayment Terms | Annual Fees | Pre-Approval Time |
|---|---|---|---|---|---|---|
3.75% to 18% | $25,000 to $1,000,000 | 660 | 10-year draw period | None | N/A | |
Not specified | Not specified | Not specified | Not specified | Not specified | Not specified | |
1.99% special | $25,000 to $1,000,000 | Not specified | 10-year draw period, | Not specified | Not specified | |
3.65% to 8.80% | $15,000 to $750,000 | 730 | 10-year draw period, | $90 | Not specified | |
Starting at 3.99% | $10,000 to $500,000 | Not specified | 10-year draw period | $75 | Not specified | |
Starting at 4.64% | $10,000 to $500,000 | Not specified | 10-year draw period | None | 24 hours | |
Starting at 3.50% | $15,000 to $400,000 | 620 | 5 to 30 years | 3% to 4.99% | 24 hours | |
Starting at Prime - 0.50% | Starting at $17,500 | Not specified | 10-year draw period, | $50 | Not specified | |
Starting at 3.34% | Starting at $25,000 | 740 | Not specified | $50 | Not specified | |
3.49% for 6 months | Starting at $5,000 | Not specified | 15-year draw period | None | 24 hours | |
3.75% to 10.63% variable | $10,000 to $500,000 | Not specified | 10-year draw period, | None | Not specified |
MoneyGeek’s Picks for Best HELOC Lenders in Hawaii
MoneyGeek compiled a list of the top home equity line of credit lenders in Hawaii to help you find the right lender for your preferred needs.
Remember that not many lenders provide HELOC, and those that do are primarily national banks that only lend to customers with good to exceptional credit. If a national lender rejects your HELOC application, MoneyGeek recommends looking at local credit unions as an alternative.
Best Overall HELOC Lender in Hawaii: Bank of America
- Bank of America
Bank of America offers a 1.99% introductory APR and no annual fees.
- 7.49% (introductory rate) then 9.90%APR Range
- Generally $25,000 to $1,000,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- NoneAnnual Fees
- UndisclosedPre-Approval Time
Best HELOC Lender for Good Credit in Hawaii: U.S. Bank
- U.S. Bank
Borrowers with U.S. Bank can have up to a $750,000 credit limit.
- 8.95% to 12.70%APR Range
- $15,000 to $750,000 ($1 million in California)Loan Amount Range
- 10-year draw period; up to 30 years repayment periodsRepayment Terms
- Up to $75Annual Fees
- UndisclosedPre-Approval Time
Best HELOC Lender for Bad Credit in Hawaii: Figure
- Figure
For borrowers with weak credit, this is an excellent extended-payment alternative.
- 6.10% to 14.74%APR Range
- $20,000 to $400,000Loan Amount Range
- 5 to 30 yearsRepayment Terms
- NoneAnnual Fees
- 24 hoursPre-Approval Time
Best HELOC Lender for Competitive Rates in Hawaii: PenFed
- PenFed Credit Union
For the first six months, PenFed Credit Union provides a 0.99% introductory APR.
- Starting at 8.625%APR Range
- $25,000 to $500,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- $99Annual Fees
- UndisclosedPre-Approval Time
HELOC vs. Home Equity Loans
Home equity loans (HELOANs) and home equity lines of credit (HELOCs) are excellent ways to fund major expenses with your home as collateral. However, there are differences between the two.
A home equity loan is a one-time payment made to the borrower. Over the life of the loan, the interest and monthly payments are usually fixed.
A home equity line of credit is a revolving credit line that functions like a credit card. You can withdraw money as often as you need within a certain time period and up to a certain limit (similar to a credit card). You must repay the amount borrowed. HELOC rates are often variable, meaning they might fluctuate according to economic conditions.
There is more information about their differences in the table below.
HELOC | Home Equity Loan | |
|---|---|---|
Interest Rate | Adjustable interest rate, | Fixed interest rate |
Monthly Payment | Changes depending | Fixed monthly payments |
Repayment Terms | During the draw period, borrowers pay | Repayment starts as soon as |
Fund Disbursements | Line of credit | Lump sum delivery |
How to Apply for a HELOC
Applying for a home equity line of credit is relatively simple. Most lenders enable applicants to provide basic information via online forms. Here’s how to apply for a HELOC.
Determine how much you need
You must know your intended credit line amount and how you will utilize it before applying for a HELOC. Remember that a HELOC may be used for a variety of financial needs, such as debt consolidation, home improvements and college tuition.
Assess your financial standing
Evaluate your financial status in addition to deciding how much you need to borrow. Are you financially secure? Do you have any other credit cards open? To determine your capacity to repay the loan, most lenders have minimum credit score requirements. If you can take action to improve your credit before applying for a HELOC, you may be able to get a better interest rate.
Shop around and compare lenders
MoneyGeek advises taking the time to evaluate lenders and compare their offerings. This might also help you figure out which lenders and terms are the most suitable for your needs. It's critical to shop around for the best prices so you can lock in low rates before applying.
Apply
Although the majority of HELOC applications may be done online, certain lenders need you to contact them directly or visit a physical location. Typically, the application procedure requires you to provide details about your income and assets.
Use funds wisely
When using HELOC funds, make sure to keep track of your finances at all times. It's best not to think of it as a piggy bank that you can use for frivolous purchases like vacations and new cars. Also, keep in mind that interest rates may, without any notice, increase.
Frequently Asked Questions About HELOCs
For first-time consumers, understanding how a home equity line of credit works might be confusing. MoneyGeek provides answers to some frequently asked questions below.
sources
- Bank of America. "Home Equity Assumptions." Accessed June 7, 2022.
- Bank of America. "Home equity loan vs. line of credit?." Accessed June 21, 2022.
- U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.
- U.S. Bank. "Home Equity FAQs." Accessed June 7, 2022.
- Figure. "Get a Home Equity Line." Accessed June 13, 2022.
- Figure. "Figure Home Equity Line FAQs." Accessed June 13, 2022.
- PenFed Credit Union. "PenFed Home Equity Line of Credit." Accessed June 21, 2022.
- Hawaii Living. "What’s New for 2018 Hawaii Real Estate?." Accessed June 21, 2022.