HONOLULU HELOC RATES TODAY
Current HELOC rates in
Honolulu, HI.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Current HELOC rates in
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Compare HELOC rates in Honolulu.
Key Points
• Home equity line of credit interest rates are influenced by the prime rate and borrower factors.
• HELOCs provide a revolving line of credit secured by your home equity.
• The draw period usually spans 10 years, with a subsequent repayment period of 10 to 20 years.
• Interest is only charged on the amount you borrow, not on the entire credit line.
• With adjustable interest rates, your monthly payments and total costs can change.
Introduction to HELOC Rates
This guide will help you understand how home equity line of credit (HELOC) interest rates work in Honolulu, HI, and how you can use a HELOC to your advantage. We’ll cover what a home equity line of credit is and how it works, what impacts interest rates, and how to compare different offers. Whether you’re looking to make home improvements, consolidate debt, or pay for education, this guide will help you make an informed decision about tapping into your home equity.
What Exactly Is a HELOC?
A HELOC is a revolving credit line that’s secured by your home equity, which is essentially your home’s value minus your outstanding mortgage balance. To qualify, most lenders will look for you to have at least 15% equity in your home, and you can typically borrow up to 90% of that equity.
A HELOC has two main phases: the draw period and a repayment period. You’ll need to keep up with your monthly payments during both periods; otherwise the lender could foreclose on your home. So let’s look at those phases in detail.
The Draw Period
During the draw period, which lasts 10 years, you can access funds as needed, pay interest only (versus paying down the principal plus interest), and reborrow up to your credit limit if you do repay the principal. You may find it helpful to have a HELOC interest-only calculator on hand to estimate your payments in this phase.
The Repayment Period
Next you hit the repayment period, which lasts up to 20 years and requires you to make monthly principal-plus-interest payments. HELOCs have variable interest rates, so the amount of your monthly payment can change at regular intervals. A HELOC monthly payment calculator will be handy to compute what you owe.
Recommended: Different Types of Home Equity Lending
The Origin of HELOC Interest Rates
Lenders base HELOC rates on the prime rate, which is driven by the actions of the Federal Reserve. Each lender then adds its own margin to the rate, which accounts for the difference in interest rate offers you’ll see in the HELOC marketplace. When you’re looking to secure a HELOC, lenders also take into account your credit score, debt-to-income (DTI) ratio, and the amount of equity you have in your home. We’ll explain how to prepare for that below.
How Interest Rates Impact HELOC Affordability
The interest rate on your home loan was important when you obtained your mortgage, and it’s no different with a HELOC. The rate you obtain can make a big difference in the affordability of your monthly payments and the total amount of interest you’ll pay over the long haul.
If you borrowed $50,000 and repaid it over 20 years, a one-percentage-point rate increase from 7.00% to 8.00% would increase the total interest paid over the life of the HELOC by almost $7,000. The more you borrow, the more you feel the pinch of a higher rate. It’s worth spending the time on a thorough search of the market to find the lender that offers you the best combination of a low interest rate and convenient terms.
HELOC Interest Rate Trends
As you start to explore HELOCs, you’ll probably begin to keep a closer eye on the prime rate. It’s helpful to have some sense of the history of the rate, because it can put current rate offers into perspective. Since 2018, the prime rate has seen its ups and downs, hitting a low of 3.25% in 2020 and a high of 8.50% in 2023.
| Date | U.S. Rate |
|---|---|
| 9/19/2024 | 8.00% |
| 7/27/2023 | 8.50% |
| 5/4/2023 | 8.25% |
| 3/23/2023 | 8.00% |
| 2/2/2023 | 7.75% |
| 12/15/2022 | 7.50% |
| 11/3/2022 | 7.00% |
| 9/22/2022 | 6.25% |
| 7/28/2022 | 5.50% |
| 6/16/2022 | 4.75% |
| 5/5/2022 | 4.00% |
| 3/17/2022 | 3.50% |
| 3/16/2020 | 3.25% |
| 3/4/2020 | 4.25% |
| 10/31/2019 | 4.75% |
| 9/19/2019 | 5.00% |
| 8/1/2019 | 5.25% |
| 12/20/2018 | 5.5% |
| 9/27/2018 | 5.25% |
Source: U.S. Federal Reserve
Variable vs. Fixed Interest Rates
One thing that distinguishes a HELOC is that this type of borrowing often comes with a variable interest rate, which means your costs can change over time. This might feel wildly unpredictable, but in fact the changes will be spelled out in your HELOC agreement. You’ll know from the get-go how often your rate may change and how widely it could range. There is a rate cap, which is comforting. Nevertheless, determining whether your budget can handle potential rate swings is a critical part of the HELOC decision-making process.
Helpful Tools and Calculators
Before you apply for a HELOC, you can use online tools to estimate your monthly payment and interest costs. Here are three useful calculators to explore as you make up your mind about a HELOC.
Run the numbers on your HELOC.
-
Home Equity Loan Calculator
Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
-
HELOC Payment Calculator
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
-
HELOC Interest Only Calculator
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
How to Qualify for a Competitive HELOC Rate
To snag a top-tier HELOC rate, you’ve got to meet some standard criteria. Lenders generally look for HELOC borrowers to have at least 15% equity in their home. To check your number, subtract what you owe on your home loan from your home’s estimated value. Then divide the answer by your home value and you’ll get a percentage of equity. Next step? Move on to the to-dos below.
Improve Your Credit Score
To be in the best position to secure a low HELOC rate, you should aim for a credit score of 700 or higher. Making timely payments and reducing your credit card balances can have a significant impact on your credit score. It’s a good idea to check your credit report for errors and dispute any you find. Keeping old credit accounts open and using them responsibly can also help you maintain a healthy credit history, which can make you a more attractive candidate for a competitive HELOC rate.
Calculate Your Debt-to-Income Ratio (DTI)
Your DTI ratio is a simple formula: your total monthly debt payments divided by your gross monthly income. Most HELOC lenders prefer a DTI under 50%, but naturally, the lower the better, and the goal for a great rate is to be under 36%. To calculate yours, tally up your monthly financial commitments — from your car payment to your credit card bills—and divide by your gross monthly income. A lower DTI can work in your favor, boosting your chances of HELOC approval and a more attractive rate.
Application Process for a HELOC in Honolulu
Some lenders offer the convenience of prequalification for a HELOC online. This first step can give you a glimpse of the HELOC rates in Honolulu you might be eligible for and the credit amount you could access. Once you’re prequalified, you can move on to the full application, following these steps.
Step 1: Crunch the Numbers
Make sure you have a minimum of 15% equity in your home, a credit score of at least 640, and a DTI ratio below 50%.
Step 2: Compare Lenders
If you’ve prequalified online with multiple lenders, you likely have estimates of the rate you might qualify for. If not, now’s the time to do so. But don’t just compare rates. Also look at qualification requirements, HELOC amounts, fees, and the duration of both the draw and repayment periods. This is your chance to pinpoint the lender that offers the most bang for your buck.
Step 3: Submit Your Application
Find a quiet spot and have all your documents at hand, because now is the time to fill out the lender’s application. You’ll need your ID, proof of income, and property details handy. Proof of income means recent pay stubs, W-2s, and tax returns. Entrepreneurs and others who are self-employed might need a profit-and-loss statement and a couple of years of tax returns. Also have your homeowners insurance declaration page ready. You can submit your application online, over the phone, or in person.
Step 4: Get an Appraisal
A home appraisal is an objective and professional analysis of your home’s value. The lender will use this information to determine the maximum amount you can borrow and the HELOC rate you qualify for. It’s an important step in the application process and ensures that the lender has a clear understanding of your property’s worth. Wait for your prospective lender’s instructions as to what is required in the appraisal stage.
Step 5: Prepare for Closing
Before you can get your hands on your HELOC funds, you’ll need to sign documents and cover the fees. Funds may be available to you as soon as three days after the closing. Make sure you’re clear on the terms and conditions of your HELOC, including any language governing a variable interest rate, to prevent any unexpected hiccups.
Closing Costs and Fees
HELOC closing costs are generally lower than what you’d face with a home purchase or refinance. Your biggest expense is likely to be the appraisal, which can run anywhere from $300 to $600. A title search, if required, might cost you $100 to $450. You could also face application, loan origination, and administrative fees, along with annual maintenance fees that could go as high as $250.
Tax Benefits and Considerations
Some good news: You can deduct HELOC interest on your 2025 taxes if the funds are used to improve your primary residence. To make sure you’re on the right track (and for help itemizing your return if you’re no expert), it’s a good idea to consult with a tax advisor. An advisor can also help you keep tabs on how this tax rule may change in years to come.
Recommended: HELOC vs. Home Equity Loan
Alternatives to HELOCs
There are other ways to get equity out of your home, including home equity loans and cash-out refinancing. If you’re at all unsure about whether a HELOC is the right move, it’s worth exploring all your options. Here are the details:
Home Equity Loan
A home equity loan provides borrowers with a one-time lump-sum payment. You’ll start repaying the loan immediately, with a fixed interest rate and a payment plan that runs from 10 to 30 years. Typically, you can borrow up to 85% of your home equity. Lenders often look for a credit score of 680 or above, though here again 700 or more will get you better rates. If you need to borrow a specific amount of money and like the idea of consistent monthly payments, this might be the right choice for you. A home equity loan calculator can help you estimate how much you could borrow.
Cash-Out Refinance
A cash-out mortgage refinance lets you refinance for more than you owe and pocket the difference. It’s a good solution when you need a lump sum, provided that current interest rates are as good or better than the rate you have with your original loan. (Compare costs, including closing costs, directly.) Typically, you need at least a 620 credit score and a DTI ratio under 43%.
When considering a cash-out refinance vs. a home equity line of credit, remember that with a refi you can choose between a fixed or variable interest rate. A refinance also leaves you with one monthly payment.
Personal Loan
A personal loan won’t require you to put your home on the line in order to obtain funds, which can put some homeowners at ease. It’s typically an unsecured loan, meaning no collateral is required. The timeline for a personal loan is a bit shorter than that of a HELOC: two to seven years. Personal loans also tend to have predictable monthly payments and somewhat more lenient requirements.
Most lenders will look for a credit score of 610 or higher when considering a personal loan application. While these loans can often be secured quickly, it’s important to note that they often carry higher interest rates than HELOCs or home equity loans.
The Takeaway
If you’re considering a HELOC, it’s important to weigh the benefits and potential risks. On the plus side, HELOCs offer a revolving line of credit, which means you can borrow and repay funds as needed, with interest charged only on the amount of the credit line you actually use. This can be a cost-effective solution for large expenses, especially with competitive HELOC rates. But be mindful of the variable interest rate and the potential risk of foreclosure if payments are missed. Always take the time to assess your financial situation and explore interest rates from multiple lenders before making a decision.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
What can a HELOC be used for?
A HELOC is very versatile. You can use the funds you draw from your credit line for any purpose. Many people use the money for home renovations or to cover educational costs. Some people consolidate higher-interest debt with a HELOC. In 2025, if you use your HELOC to cover significant home improvements (or to add on to your primary home) the interest costs could be deductible on your federal taxes.
What’s the monthly payment on a $100,000 HELOC?
The monthly payment on a $100,000 HELOC can vary greatly depending on the interest rate and the repayment period. During the draw period, which can be 10 years, you may only need to pay interest on the amount you’ve borrowed, which isn’t necessarily going to be the full $100,000. If you did use the entire credit line of $100,000, your interest rate for repayment would likely be a variable one. But at an average of 8.00% and a repayment term of 20 years, you would pay $836 per month.
What are the perks of a HELOC?
The perks are plenty! You can use the funds for just about anything, enjoy a reusable credit line during the draw period, and only pay interest on the amount of the credit line that you actually use. This is in contrast to a home equity loan, where you would get a lump-sum loan of a large sum and begin making payments — principal plus interest — immediately. HELOCs often come with competitive rates, although they also have variable rates which change over time. And there are potential tax benefits if you use your HELOC to fund home renovations.
What might disqualify you from getting a home equity loan?
There are a few things that could stand in the way of you obtaining a home equity loan or a home equity line of credit. You need to have at least 15% equity in your home, for one thing, and some lenders require 20% equity. You’ll also need to meet a lender’s credit-score requirements (typically 680 or better) and have a healthy debt-to-income ratio below 50%.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SOHL-Q225-416
More HELOC resources.
-
What is a Home Equity Line of Credit
-
Different Types of Home Equity Loans
-
HELOC vs Home Equity Loan: How They Compare