Best HELOC Lenders in Hawaii (November 2024)

Name: Best HELOC Lenders in Hawaii (November 2024)
Item: Best HELOC Lenders in Hawaii (November 2024)
Author: Zachary Romeo, CBCA

HawaiiUSA Federal Credit Union is the best HELOC lender in Hawaii, with a MoneyGeek score of 96 out of 100. It offers excellent customer service, is credible and transparent, and provides competitive interest rates.

By Zachary Romeo, CBCA

Reviewed by Ramsey Coulter

Edited by Denise Cristobal

Updated: November 23, 2024

Advertising & Editorial Disclosure

Key Takeaways

HawaiiUSA Federal Credit Union is the best home equity line of credit (HELOC) lender in Hawaii, with a MoneyGeek score of 96 out of 100. Pentagon Federal Credit Union is the runner-up, with a MoneyGeek score of 94 out of 100.

The average HELOC limit in Hawaii is $194,331. How much you can borrow often depends on your home's equity, outstanding mortgage balance and credit score.

Comparing rates can help find lenders suited to your needs. MoneyGeek compiled the best HELOC rates in Hawaii, updated weekly to assist you in your journey.

Overall Best HELOC Lender in Hawaii

HawaiiUSA Federal Credit Union

MoneyGeek Score:

96/ of 100

Minimum Credit ScoreUndisclosed

Average HELOC APR9.00%

Draw Period10 years

Repayment Period20 years

Time to Receive FundsUndisclosed

PROS

Borrow up to $1 million
Allows interest-only payments during the draw period
Offers rate discounts between 0.10% and 0.50%

CONS

Membership is required to apply
Doesn't disclose minimum credit score requirements
No hardship assistance program for HELOC

HELOC

Best HELOC Lenders in California

HELOC

Best HELOC Lenders in New Mexico

Runner-Up for Best HELOC Lender in Hawaii

Pentagon Federal Credit Union

MoneyGeek Score:

94/ of 100

Minimum Credit Score680

Average HELOC APR8.00%

Draw Period10 years

Repayment Period20 years

Time to Receive FundsUndisclosed

PROS

Option to switch from variable to fixed rate
Allows interest-only payments during draw period
No origination fee

CONS

Charges an annual fee of $99
Minimum line amount is $25,000
Requires an appraisal for lines over $400,000

Calculate Your Monthly Payment

The average HELOC balance in Hawaii in the third quarter of 2023 was $84,070, according to Experian. Understanding this figure is essential for homeowners considering or currently managing a HELOC. Calculating your HELOC payments is key to managing this debt effectively and planning for future financial obligations.

Use our HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR and loan terms. The full amortization schedule provided will help you see how much of your payments go toward interest and principal over time.

Hawaii HELOC Payoff Calculator

This HELOC payment calculator assumes that you take out one lump sum at the start of your interest-only period. Your actual payoff schedule will vary depending on your interest rate and market conditions.

Credit Line Information

Draw Period Payment

$0

Repayment Period Payment

$0

Graph view
Table view
Amortization

Credit Payoff Schedule for Home Equity Line

YEAR

Ending balance

Principal paid

Interest paid

Best HELOC Lender in Hawaii for Affordability

Central Pacific Bank

MoneyGeek Score:

94/ of 100

Minimum Credit ScoreUndisclosed

Average HELOC APR9.50%

Draw Period10 years

Repayment Period20 years

Time to Receive FundsUndisclosed

PROS

Borrow up to $1 million
Allows interest-only payments during the draw period
Option to convert from variable to fixed rate

CONS

Charges an annual fee of $50
Charges a prepayment penalty fee of $1,000 or 2%
Doesn't disclose minimum credit score requirements

Best HELOC Lender in Hawaii for Service Quality

First Hawaiian Bank

MoneyGeek Score:

100/ of 100

Minimum Credit ScoreUndisclosed

Average HELOC APR9.89%

Draw Period10 years

Repayment Period20 years

Time to Receive FundsUndisclosed

PROS

Offers fixed-rate HELOC options
Has a 0.25% rate discount for automatic payments
No appraisal required for most lines up to $400,000

CONS

Charges a $100 annual fee
Property insurance required
Other HELOC information not disclosed on website

What You Can Use a HELOC for in Hawaii

Home equity lines of credit (HELOCs) are popular in Hawaii because they offer flexibility and control. Homeowners can decide how much to borrow and when to repay, making it a versatile financial tool.

Understanding where you can use a HELOC helps you maximize its benefits. Here is a list of potential uses for a HELOC.

Home improvements or renovations

A HELOC is ideal for home improvements, offering flexible funding as costs evolve. It allows you to enhance your home without finalizing expenses upfront, making it a smart choice for dynamic renovation projects.

Consolidating high-interest debt

According to Experian data, the average 2023 consumer debt in Hawaii was $147,103. A HELOC for debt consolidation merges multiple debts into one manageable payment, potentially lowering interest rates.

Funding education expenses

Using a HELOC for education expenses is smarter than other debts. It covers tuition, books and housing, offering lower interest rates and flexible repayment, making it a practical choice for educational funding.

Investment properties

A HELOC can fund investment properties, offering potential returns. It's vital to shop around for the best HELOC lenders for investment property to secure favorable rates and terms and maximize your investment potential.

How to Apply for a HELOC in Hawaii

Understanding the steps to apply for a home equity line of credit (HELOC) in Hawaii is essential for navigating the process smoothly. Below, we've broken down the journey into six straightforward steps to guide you through your application.

1
Review your financial health
Reviewing your credit score, debt-to-income ratio and home equity is essential before applying for a HELOC. The average credit score in Hawaii was 732 in the third quarter of 2023, based on Experian data. A higher score can improve your chances of approval.
2
Compare rates in Hawaii
Comparing rates in Hawaii can help you secure the best HELOC deal. Consider lender features like repayment terms, fees and the option for a fixed-rate HELOC. Evaluating these aspects ensures you choose a lender that meets your financial needs.
3
Prepare required documentation
Preparing the necessary documents for a HELOC application can streamline the process. Common requirements include proof of income, recent tax returns and information on your mortgage and home value. Having these ready can expedite your application.
4
Submit an application
Most lenders offer online applications, but you can also apply in person if a branch is available. Ensure all information is accurate to avoid delays. Double-check for errors or omissions before submitting your application.
5
Undergo a home appraisal
Some lenders may require a home appraisal to determine your home's current market value. This process involves a professional assessment of your property's worth, which can influence your HELOC terms.
6
Wait for approval and closing
The HELOC approval process can take two to six weeks. Once approved, you'll proceed to closing, which involves signing documents and possibly paying closing costs. Some lenders may cover part of these expenses.

Know How Much You Can Borrow in Hawaii

In Hawaii, the average HELOC limit was $194,331, based on data from Experian for the third quarter of 2023. The maximum amount you can borrow with a HELOC is usually tied to the equity you have in your home. The higher your equity, the higher your potential credit limit can be.

Check out the table below to see the range of credit lines offered by Hawaii lenders in our database that disclose their line amount range.


Central Pacific Bank	Up to $1,000,000
HawaiiUSA Federal Credit Union	$10,000 to $1,000,000
Pentagon Federal Credit Union	$25,000 to $500,000

Ask the experts:

What factors should homeowners prioritize when comparing HELOC lenders?

Credit & Mortgage Expert

When shopping for a HELOC, most people focus only on the interest rate. Instead, you should focus on the annual percentage rate (APR) as that is the true cost of what you are paying back. Also consider any fees the lender may be charging you. A lower rate with higher fees can be deceptive.

FAQ: Best HELOC Lenders in Hawaii

Who is the best HELOC lender in Hawaii?

HawaiiUSA Federal Credit Union is the best HELOC lender in Hawaii, with a MoneyGeek score of 96 out of 100. It stands out for its excellent customer service, credibility and transparency, and competitive interest rates.

How to find the best HELOC lenders for bad credit in Hawaii?

A bad credit score is generally below 580 for FICO scores and between 300 and 600 for VantageScore. When looking for the best HELOC lenders for bad credit, consider factors like flexible credit requirements, willingness to work with lower credit scores and transparent fee structures.

What factors should I consider when choosing a HELOC lender in Hawaii?

When choosing a HELOC lender in Hawaii, consider interest rates, fees, borrowing limits, repayment terms and lender reputation.

What are common fees associated with HELOCs that I should compare in Hawaii?

Common fees associated with HELOCs include origination fees, annual fees, application fees and early closure fees.

What is the typical draw period for HELOCs, and does it vary between lenders in Hawaii?

The typical draw period for HELOCs is 10 years, but some lenders may offer more flexible options.

How can I find a lender with flexible repayment options in Hawaii?

For more flexible repayment options, look for lenders that offer fixed-rate HELOC options or allow interest-only payments during the draw period.

MoneyGeek's scoring system offers a comprehensive overview of how each lender performed in areas that matter most to borrowers. Scores were allocated based on the inclusion or exclusion of certain desirable features in various critical categories.

Our analysis was completed in October 2024 and considered different banks and credit unions in Hawaii from S&P Global's SNL Depository Rates dataset.

101Lenders Analyzed

About Zachary Romeo, CBCA

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.

Read Full Bio »

sources

Experian. "Average HELOC Balances up 2.7% in 2023." Accessed November 13, 2024.
Experian. "Average U.S. Consumer Debt and Statistics." Accessed November 13, 2024.
Experian. "What Is the Average Credit Score in the US?." Accessed November 13, 2024.

Best HELOC Lenders in Hawaii (November 2024)

Key Takeaways

Overall Best HELOC Lender in Hawaii

Runner-Up for Best HELOC Lender in Hawaii

Calculate Your Monthly Payment

Hawaii HELOC Payoff Calculator

Credit Line Information

$0

$0

Credit Payoff Schedule for Home Equity Line

Best HELOC Lender in Hawaii for Affordability

Best HELOC Lender in Hawaii for Service Quality

What You Can Use a HELOC for in Hawaii

How to Apply for a HELOC in Hawaii

Review your financial health

Compare rates in Hawaii

Prepare required documentation

Submit an application

Undergo a home appraisal

Wait for approval and closing

Know How Much You Can Borrow in Hawaii

What factors should homeowners prioritize when comparing HELOC lenders?

FAQ: Best HELOC Lenders in Hawaii

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