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HELOC rates in Hawaii

Here are today's Home Equity Line of Credit (HELOC) rates. See your personalized rates and find out how much cash you can get with our online pre-approval. It only takes a few minutes and won't impact your credit score.

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What impacts your HELOC rate in Hawaii?

Loan type

The kind of HELOC you choose, fixed or variable, will change how much your interest rate goes up or down.

Credit score

A higher credit score usually means a lower rate because it shows lenders you’re good at paying back money.

Location

Where you live can affect your rate because lenders look at local housing markets and rules.

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Terms

How long you take to pay back the loan can change the rate. Shorter loans often have lower rates.

Home equity

The more equity you have in your home, the better your chances of getting a lower rate.

A home equity line of credit (HELOC) rate isn’t one-size-fits-all. It's unique to each homeowner in Hawaii. Lenders look at several key factors to determine your creditworthiness. At Better, we keep this process simple, transparent, and designed to help you make smart borrowing decisions.

Credit score

Hawaii HELOC rate type

HELOCs offer two primary rate structures that directly affect your monthly payments and total borrowing costs.

Variable rates

Variable-rate HELOCs adjust with market conditions, typically tied to the prime rate plus a lender-determined margin. Your rate might be expressed as "prime + 1.5%" for example.

Lenders set your margin based on your credit score and loan-to-value ratio. Homeowners with the strongest financial profiles tend to secure the lowest margins.

Most variable-rate HELOCs include rate caps that limit increases. These caps protect you from extreme rate spikes but still allow significant payment changes over time.

Variable rate advantages:

Lower starting rates: Often 1-2% below fixed-rate options
Potential savings: Payments decrease if prime rate drops
Market flexibility: Benefits from economic downturns when rates fall

Variable rate considerations:

Payment uncertainty: Monthly costs fluctuate with rate changes
Budget challenges: Harder to predict long-term expenses
Rate risk: Payments can rise substantially if rates climb

Variable rates work best for borrowers who plan to repay their HELOCs quickly or those who are OK with payments that fluctuate.

Fixed rate

Fixed-rate HELOCs lock your interest rate for a set period. The rate stays the same regardless of market movements. This stability comes in several forms:

Fully fixed-rate HELOCs: Your entire credit line maintains one locked rate
Hybrid options: Convert portions of your balance from variable to fixed rates
Rate conversion features: Switch from variable to fixed during your draw period

Fixed rate advantages:

Payment predictability: Consistent monthly payments simplify budgeting
Rate protection: Shield yourself from rising interest rates
Planning certainty: Easier to forecast long-term costs

Fixed rate considerations:

Higher starting rates: Typically 1-2% above variable rates initially
Missed opportunities: No benefit if market rates decline
Less flexibility: Harder to adjust if your financial situation changes

Fixed rates appeal to homeowners who are planning major renovations or debt consolidation, who value payment stability over potential savings.

Most HELOCs in Hawaii come with variable rates, but homeowners can find fixed-rate options. Homeowners who want fixed rates can also get home equity loans. These loans deliver a lump sum payment up front and then require sticking to a fixed repayment schedule.

At Better, all HELOCs are variable-rate, meaning your rate changes based on the market index (such as the Prime Rate). While this means your rate can fluctuate, it also allows you to take advantage of rate drops without refinancing.

Why we offer variable rates: Fixed-rate HELOCs usually start higher than variable-rate HELOCs, and locking in early can mean paying more than necessary if rates fall.

Home equity

Equity is the amount of your home that's already paid off. The more equity you have, the better your rate. Lenders measure equity through CLTV, or combined loan-to-value ratio:

CLTV under 80%: Typically qualifies for our lowest rates
CLTV 80% or higher: Considered higher risk, may mean a higher rate

Tip: Paying down your mortgage or boosting your home value before applying can improve your LTV and help you get a better rate.

What can you do with a HELOC?

A HELOC resembles a credit card. Account holders can use the credit line, repay the balance and then re-use the same credit line during the HELOC's draw period.

The biggest difference between a HELOC and a credit card: HELOCs are secured by home equity which means they can offer a much lower annual percentage rate than an unsecured credit card.

Money from a HELOC can:

Improve your home

Home renovations top the list for HELOC usage, and for good reason. Kitchen remodels, bathroom upgrades, or room additions can boost your property value while improving your living space. The bonus? Interest on HELOCs used for substantial home improvements may qualify for tax deductions, though you'll want to consult a tax professional about current regulations.

Consider this scenario: You need a kitchen renovation and get a HELOC with a $60,000 limit. The HELOC lets you draw funds as expenses come up. You might spend $20,000 of the credit line for cabinets this month, for example. You'd pay interest only on that balance and not on the full $60,000 credit limit.

Consolidate debt

HELOC rates typically beat credit card rates by wide margins, making debt consolidation an attractive way to use a HELOC. You can pay off high-interest credit cards, personal loans, or other debts with your lower-rate credit line. This strategy simplifies your finances by turning multiple payments into one.

Lower monthly payments: Consolidating $50,000 in credit card debt at 18% APR into a HELOC at 8% could cut your monthly payments significantly.

This advantage does come with a bigger risk. You're securing consumer debt with the value of your home. That's one reason it's important to make sure you can afford the payments before taking out a HELOC.

Pay for other expenses

Money from a HELOC in Hawaii can also help pay for major life expenses beyond renovations. College tuition, wedding costs, medical bills, or emergency repairs all become more manageable with access to your home's equity. Some homeowners establish HELOCs as emergency funds, drawing only when needed.

Business owners sometimes use HELOCs to fund ventures or smooth cash flow gaps. The key is comparing rates carefully and ensuring any use of your credit line aligns with your long-term financial goals before putting your home at stake.

Property location

What can you do with a HELOC in Hawaii?

Understanding HELOCs

Application process for a HELOC in Hawaii

Step 1: Gather information

Start by learning more about your personal finances. This means checking your credit score. Most lenders require a minimum score of 620, though scores above 740 can help borrowers get the very best HELOC rates.

Next, find out how much equity you have by estimating your home's current market value and subtracting your remaining mortgage balance. If your home is valued at $350,000 and you owe $150,000 on the mortgage, your equity is around $200,000.

Keep in mind you won't be able to borrow all of your home's equity. Most lenders require 15% to 20% of the home's value to remain unborrowed. Better can allow HELOCs that leave as little as 10% of the home's value unborrowed.

Finally, calculate your debt-to-income ratio, or DTI. Add up your monthly debt payments and then compare them to your gross monthly income. Someone with $3,000 in monthly debts and $6,000 in monthly income would have a DTI of 50%. Ideally, borrowers should have DTIs below 43%.

You'll need to gather up the documents that show all these numbers: Your pay stubs, W-2s, bank statements, mortgage statements, for example.

Step 2. Compare rates

Once you're familiar with your own financial data, it's time to check rates with lenders. HELOC rates can vary a lot between different lenders, so it's good to check more than one offer. Advertised rates won't necessarily be the rates you get. Getting a preapproval is the best way to see a rate that's unique to you.

Most HELOCs have variable rates, which means they change with market conditions. Variable rates are based on the prime rate. On top of the prime rate, the lender adds its margin rate. It's the margin rate that can vary by lender.

Along with rates, compare annual fees, closing costs, and minimum draw requirements. Many lenders offer introductory rates that increase after an initial period. Understanding these terms prevents future payment surprises.

Choose a lender

Select a lender based on overall value rather than just the lowest advertised rate. Consider customer service reputation through online reviews and industry ratings. The application process itself often reveals much about a lender's efficiency and transparency.

Some lenders specialize in specific borrower profiles: people with excellent credit or high-value properties, for instance. Finding a lender experienced with your unique needs can allow better terms and faster processing.

Once you've narrowed your list of lenders, request Loan Estimates from your top three choices to make a side-by-side comparison of rates, fees, and terms before making your final decision.

Why it matters: Shorter draw periods can help you stay disciplined with borrowing, while still giving you flexibility for planned expenses like renovations or debt payoff.

Why choose Better for your HELOC

1400+ customers

provide us 5 stars in

09/02/2025

In just 17 days...

Other lenders did not take the time to do the proper evaluation of my finances and would not work with me to evaluate my finances and ability to pay. Better was able to process my application and fulfill my HELOC needs in just 17 days from start to finish.

See in Trustpilot →

09/02/2025

In just 17 days...

Other lenders did not take the time to do the proper evaluation of my finances and would not work with me to evaluate my finances and ability to pay. Better was able to process my application and fulfill my HELOC needs in just 17 days from start to finish.

See in Trustpilot →

04/28/2024

Best experience I ever had

This was the best experience I have ever had refinancing a home. From the first call to completion, I was kept informed of the progress. The costs were "better" than the other companies I considered. The timeline to completion was excellent. The online system was easy to use and the required documents were not excessive. My questions were answered promptly. Each person that I talked to treated me as someone that was important to them.

See in Trustpilot →

07/15/2024

Would definitely recommend

We needed to take out a HELOC loan to remodel our home and we were nervous about the process. Better Mortgage helped us through the process and were quick to fund. Our loan coordinator, Chris, was amazing and reached out to us when we had any questions and to update us on the status of the loan. Would definitely recommend Better Mortgage for your loan needs.

See in Trustpilot →

1/3

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Expert opinions

What’s a common mistake people make when deciding between a HELOC and a home equity loan?

It's important to talk to a licensed loan officer that can help you go over the difference and give you personalized advice based on your unique situation. There are not one-size-fits-all products.

Libby Owens

Senior Loan Consultant

NMLS #2089666

Can I get a HELOC if my mortgage isn’t paid off yet?

Yes of course! We can lend up to 90% of your loan-to-value depending on your credit score. HELOCs are geared towards homeowners who have sufficient or full equity in their home and need to access funds effectively and promptly.

Nora Maloney

Senior Loan Consultant

NMLS #1984291

Can I get a HELOC and save it for emergencies or do I have to draw funds to keep the account open?

Yes, get a HELOC and save it for emergencies. You do not have to draw funds to keep the account open.

Kyle Sueverkruebbe

Loan Consultant

NMLS #1534146

Hawaii HELOC rates FAQs

More resources: rates & calculators

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APR¹ represents the lowest available rate and may be as high as 15.55%. Lowest rate assumes a credit limit of $150,000, a combined LTV of 64%, and a FICO score of 780+. Actual rates and available credit depend on creditworthiness, LTV, loan amount, occupancy, and point adjustments. Advertised rates are based on the Prime Rate as published in the Wall Street Journal; rates are current as of [08/12/2025] and are subject to change without notice. This is not a commitment to lend.

Only the initial rate quote uses a soft credit inquiry and will not impact your credit score. A full application will include a hard credit inquiry.

Better Mortgage Corporation is a direct lender. NMLS #330511. Equal Housing Lender. Not available in all states. Please refer to NMLS Consumer Access for licensing verification.

HELOC rates in Hawaii

What impacts your HELOC rate in Hawaii?

Loan type

Credit score

Location

Terms

Home equity

Your credit score helps lenders measure risk.

Variable rates

Variable rate advantages:

Variable rate considerations:

Fixed rate

Fixed rate advantages:

Fixed rate considerations: