Updated: January 18, 2025
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Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Hawaii with an 80% LTV is 8.2%, compared with 8.5% for a 90% LTV.
HELOC rates vary by city in Hawaii. Tripler Army Medical Center has an average APR of 7.4%, whereas Waikoloa's is 9.9%.
Different lenders offer varying rates for the same loan types. Maui County Federal Credit Union's average APR is 7.0%, whereas First Hawaiian Bank's is 9.9%.
HELOC rates in Hawaii rose from 4.1% in 2020 to 8.7% by November 2024. If this trend continues, borrowing costs could increase further. Homeowners considering a HELOC should evaluate current rates and potentially lock in a rate soon to avoid higher costs.
HELOC rates in Hawaii vary depending on your loan-to-value (LTV) ratio and line limit. A lower LTV is less risky for lenders because you have more equity. For instance, an 80% LTV is safer than a 90%, reducing the chance to default on your HELOC.
The table below lets you filter between different loan amounts, offering a clearer view of what you may qualify for:
| 8.3% | 8.9% |
HELOC rates in Hawaii vary between cities due to differences in local housing markets and lender competition. For instance, a city with a stable real estate market might offer lower rates as homes retain value better, reducing lender risk.
Use the table below to filter by your city and see average APRs for $50K and $100K HELOCs.
| $100,000 | 8.6% |
| $50,000 | 8.6% |
HELOC interest rates in Hawaii differ among lenders due to varying pricing strategies and risk assessments. For those comparing options, the table below highlights the five lenders in Hawaii offering the lowest average APRs.
| Maui County Federal Credit Union | 6.5% |
| HomeStreet Bank | 7.5% |
| Pentagon Federal Credit Union | 7.6% |
| Ko'olau Federal Credit Union | 7.8% |
| Maui Federal Credit Union | 8.0% |
HELOC rates today can vary between lenders even within the same city. Use the table below to filter by city and compare APRs, helping you find the best rate available in your area.
| HomeStreet Bank | Commercial Bank | 7.5% |
| Pentagon Federal Credit Union | Credit Union | 7.6% |
| Territorial Savings Bank | Commercial Bank | 8.0% |
| Hawaii State Federal Credit Union | Credit Union | 8.1% |
| Bank of Hawaii | Commercial Bank | 8.3% |
| Hawaii Law Enforcement Federal Credit Union | Credit Union | 8.5% |
| Honolulu Federal Credit Union | Credit Union | 8.5% |
| Aloha Pacific Federal Credit Union | Credit Union | 8.5% |
| Pearl Hawaii Federal Credit Union | Credit Union | 8.6% |
| Hickam Federal Credit Union | Credit Union | 8.6% |
| Central Pacific Bank | Commercial Bank | 9.0% |
| HawaiiUSA Federal Credit Union | Credit Union | 9.0% |
| University of Hawaii Federal Credit Union | Credit Union | 9.0% |
| Navy Federal Credit Union | Credit Union | 9.1% |
| Finance Factors, Limited | Commercial Bank | 9.5% |
| First Hawaiian Bank | Commercial Bank | 9.9% |
HELOC rates in Hawaii vary between banks and credit unions, with banks typically offering higher rates. For instance, the best HELOC rate for commercial banks in Hawaii is 8.6%, compared to an average APR of 8.2% at credit unions. Credit unions are not-for-profit institutions that often provide slightly lower rates than banks.
When choosing between banks and credit unions, consider more than just rates. Banks may offer greater convenience, while credit unions might provide better customer service and lower fees. Be sure to check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
All loans are about risk. The higher the risk, the higher your rate will be. With investment properties or second homes, since they are not your primary residence the risk is inherently higher in the eyes of the lender — for example, if someone falls on hard times, they are more likely to continue making timely payments on the home they live in rather than an investment or second home.
Usually, if you are taking a HELOC on an investment property, you are using those funds to improve the property or using it to buy another investment property. Having access to cash to make more cash is what investors do. They should always take into account the higher rates when making an investment decision. If successful, the higher rate won't be a problem.
HELOCs have become a popular tool for homeowners across the U.S. looking to tap into their home's equity.
Use our Hawaii HELOC payment calculator to determine your monthly payments based on amount draws, APR and loan terms.
Our calculator also provides an amortization schedule, showing the division of payments between principal and interest over time. Understanding these details can help you manage your HELOC and plan your finances more effectively.
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.
Draw Period Payment
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Finding the best HELOC rates in Hawaii can lead to considerable savings. For instance, securing a lower rate can reduce your monthly payments significantly, freeing up funds for other expenses. Consider these five strategies to achieve the most competitive rates:
Hawaii's average credit score is 732. This is good, but aiming higher can secure better rates.
Shopping around helps find competitive rates and leverage offers for better terms.
Lower debt-to-income (DTI) ratios show stability. Pay off credit card debt to improve your ratio.
More equity lowers lender risk. Consider paying down your mortgage or making home improvements.
Closing costs impact expenses. Understand rate caps to manage HELOC adjustments.
HELOC interest rates in Hawaii are higher than home equity loan rates, with averages of 8.3% and 7.7% respectively. This difference arises from the variable rate structure of HELOCs compared to the fixed rates of home equity loans.
HELOCs are revolving credit lines with variable interest rates that can increase in rising interest rate environments, potentially affecting long-term finances.
Home equity loans provide a lump sum at a fixed rate, offering stability and predictability, which can be advantageous in situations where financial certainty is desired.
When deciding between these options, consider whether you prioritize the flexibility and potential risks of a HELOC or the stability of a home equity loan. Assess your financial goals and how changes in your home's equity might influence your decision.
Cash-out refinance is a HELOC alternative that replaces your existing primary mortgage with a new, larger loan to access cash. It differs from HELOCs and home equity loans as it creates a new primary mortgage.
For example, if you have a Federal Housing Administration (FHA) mortgage, an FHA cash-out refinance could allow you to obtain cash by refinancing into a larger loan.
Hawaii's HELOC rates average 8.3%, slightly higher than the national average of 8.2%.
Common fees include application, appraisal, annual, and early closure fees, but specifics vary by lender.
HELOC rates in Hawaii average 8.3%, while home equity loan rates are lower at around 7.7%. This difference is important for those with bad credit considering their options.
Commercial banks in Hawaii offer HELOC rates averaging 8.6%, while credit unions offer lower rates at 8.2%.
Honolulu's rates average 8.3%, matching the overall Hawaii average.
MoneyGeek examined 24 different banks and credit unions in Hawaii using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity line of credit rates.
This data is accurate as of January 10, 2025.
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.
