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.

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.

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.

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.

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.

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.

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:

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.