Updated: November 19, 2024
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Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Hawaii with 80% LTV is 8.3%, compared with 8.9% for 90% LTV.
HELOC rates vary by city in Hawaii. Fort Shafter has an average APR of 7.6%, whereas Kapaa's is 9.9%.
Different lenders offer varying rates for the same loan types. Maui County Federal Credit Union's average APR is 6.5%, 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:
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 | 8.0% |
| 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% |
| Aloha Pacific Federal Credit Union | Credit Union | 8.5% |
| Honolulu Federal Credit Union | Credit Union | 8.5% |
| Hawaii Law Enforcement 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. Commercial banks often have higher rates due to their overhead costs, with the best rate currently at 8.7%. In contrast, credit unions offer slightly lower rates, averaging 8.4%, as they are not-for-profit institutions focused on benefiting their members.
When deciding between these two, consider more than just rates. Banks may provide more convenience, while credit unions often excel in customer service and have lower fees. Be sure to check membership requirements for credit unions and watch for any hidden fees or rate adjustment clauses with both lenders.
As with anything there are pros and cons. Even though rates may be higher right now, the home values are also high. This could lead to you getting approved for more of a HELOC compared to if rates are lower but housing values decrease (not saying they will). In my opinion, it’s better to get a HELOC now and have it for when you need it. Also, HELOC rates are variable — so if rates go down, so will the rate on your HELOC.
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
Repayment 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:
Maintain a strong credit score
Hawaii's average credit score is 732. This is good, but aiming higher can secure better rates.
Compare offers from multiple lenders
Shopping around helps find competitive rates and leverage offers for better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios show stability. Pay off credit card debt to improve your ratio.
Increase your home equity
More equity lowers lender risk. Consider paying down your mortgage or making home improvements.
Review closing costs and rate caps
Closing costs impact expenses. Understand rate caps to manage HELOC adjustments.
HELOC interest rates in Hawaii are generally higher than home equity loan rates, averaging 8.5% compared to 7.7%. This difference arises from their rate structures, with HELOCs having variable rates and home equity loans having fixed rates.
- HELOCs operate as flexible, revolving credit lines with variable interest rates that can change with the market. In rising interest rate environments, HELOC rates may increase, potentially impacting a homeowner's finances over time.
- In contrast, home equity loans offer a lump sum at a fixed rate, providing consistent payments. This makes them suitable for those who prefer financial certainty and need funds for specific projects.
When deciding between the two, consider whether you prioritize the flexibility of a HELOC or the stability of a home equity loan. Assess your financial situation and how changes in your home's equity might affect 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.
The average Hawaii's HELOC rates are 8.5%, slightly higher than the national average of 8.4%.
Common fees include application, appraisal, annual, and early closure fees, but specifics vary by lender.
HELOC rates in Hawaii average 8.5%, while home equity loan rates are lower at 7.7%, which may be beneficial for those with bad credit.
Commercial banks in Hawaii offer HELOC rates averaging 8.7%, while credit unions offer lower rates at 8.4%.
Honolulu's rates are slightly higher at 8.6% compared to Hawaii's average HELOC rate of 8.5%.
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 November 15, 2024.
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.
