OAHU HELOC RATES TODAY
Current HELOC rates in
Oahu, 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 Oahu.
Key Points
• Home equity line of credit interest rates in Oahu are influenced by the prime rate and local economic conditions.
• You can borrow up to 90% of your home equity.
• HELOCs typically come with variable interest rates, which can fluctuate with the market.
• To qualify, you’ll generally need a credit score of 640 or above, a DTI ratio under 50%, and at least 15% equity.
• Use online calculators to estimate your monthly payments and total interest paid.
Introduction to HELOC Rates
Welcome to our comprehensive guide to home equity line of credit (HELOC) rates in Oahu, Hawaii. We’re here to help you, as a homeowner, understand the various factors that can influence the HELOC rates you may be offered, and guide you on how to qualify for the most favorable rate and terms. We’ll explore the benefits and potential risks of HELOCs, share recent rate trends, and provide you with the necessary tools to estimate your monthly payments. Whether you’re considering a HELOC for a home renovation, debt consolidation, or simply need to cover unexpected expenses, we’ll help you make well-informed financial decisions.
What Exactly Is a HELOC?
A HELOC is a flexible, revolving credit line that’s secured by your home equity (the appraised value of your home minus whatever you still owe on your home loan). Typically, you’ll need to have at least 15% equity in your home to qualify. With a HELOC, you can borrow up to 90% of your equity. It’s important to note that because a HELOC is secured by your home, a lender could foreclose if you fail to make your HELOC payments. A HELOC is divided into two main phases:
The Draw Period
During the draw period (often 10 years), you can withdraw funds as needed. At this time, you’ll have to pay interest on what you borrow, but most lenders won’t require you to make payments on the principal — although you can do so if you want to utilize the full credit line again. A HELOC interest-only calculator can help you find out how much you owe in interest.
The Repayment Period
After the draw period concludes, the repayment period begins. It might be 10 or 20 years. Monthly payments will increase as you begin to pay down the principal as well as the interest. HELOC interest rates are usually variable, which means the amount you pay each month may go up or down as rates change. A HELOC monthly payment calculator is useful at this stage.
Where Do HELOC Interest Rates Originate?
When you’re considering how to get equity out of your home in Oahu, it’s important to understand how interest rates are determined. Lenders peg their HELOC rates to the prime rate, a figure closely tied to the Federal Reserve’s policies. To this, each lender adds a margin. This is why you can encounter a range of interest rates in the market, and why it’s so important to seek out quotes from multiple lenders before you lock in a HELOC. Additionally, individual borrower factors such as credit score, debt-to-income (DTI) ratio, and home equity level play a role in the rate you’ll be offered.
How Interest Rates Impact HELOC Affordability
It’s easy to underestimate the impact of small HELOC rate differences on your finances. Even a seemingly small change in the percentage point up or down can have a meaningful impact on your monthly bill and total interest costs. For example, on a $50,000 HELOC with a 20-year term, a one-percentage-point rate increase from 7.00% to 8.00% during the repayment phase can raise your monthly payment by $30 and increase the total interest paid by almost $7,000. Of course, the HELOC rate is variable, so your exact numbers may differ. But the bottom line is that the more you borrow with a HELOC, the greater the effect of a change in interest rate.
Recommended: HELOCs vs. Home Equity Loans
HELOC Interest Rate Trends
Keeping an eye on the prime rate can give you a sense of where HELOC rates in Oahu are headed. And knowing a little about the history of the rate can help put current rates in perspective. Over the years, we’ve seen the prime rate fluctuate from a mere 3.25% in 2020 to 8.50% in 2023. Some borrowers try to wait until the prime rate drops to start a HELOC, but it’s not always feasible. But there are still things you can do to help ensure you get the best available rate, whenever you apply. We’ll detail those below.
| 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
HELOCs typically feature variable (or adjustable) interest rates, meaning your rate can fluctuate with the prime rate. Your agreement will outline how often the rate can change, the extent of deviation, and any rate caps. It’s crucial to be comfortable with variable rates before proceeding with a HELOC.
Helpful Tools and Calculators
Online tools can assist you in estimating HELOC costs during both the draw (interest-only) and repayment periods. Using these tools to compare interest rates is a valuable part of your decision-making process.
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 secure a favorable HELOC rate, it’s wise to prepare before applying. First, confirm you have at least 15% home equity (ideally more). Calculate this by subtracting your mortgage balance from your home’s estimated market value and dividing the result by the home value. Next, focus on improving your credit score and DTI ratio.
Improve Your Credit Score
Aim for a credit score of 700 or higher for the best HELOC interest rates (the minimum is 640). Boost your score by making timely payments and managing credit card balances. Regularly review your credit report for inaccuracies and dispute any you find. Avoid opening new credit accounts or closing old ones in the months leading up to your application.
Calculate Your Debt-to-Income Ratio (DTI)
Your DTI ratio is simply your total monthly debt payments divided by your gross monthly income. Lenders require a DTI below 50%, but a ratio below 36% is ideal. To lower your DTI, pay down debts, increase your income, or both.
Application Process for a HELOC in Oahu
The HELOC application process in Oahu is simplified by online prequalification, which offers insight into potential rates and amounts. Prequalify with multiple lenders to explore their tentative offers. If you decide to proceed with a full application, follow these steps:
Step 1: Run the Numbers
Ensure your equity, credit score, and DTI ratio meet the lender’s minimum requirements: 15% equity, a credit score of at least 640, and a DTI of 50% or less.
Step 2: Compare Lenders
Compare various lenders to find the best HELOC rate in Oahu. Beyond interest rates, consider qualification requirements, minimums and maximums, fees, and the length of draw and repayment periods. Each lender has unique terms, so carefully review the fine print.
Step 3: Submit Your Application
Gather necessary documents such as ID, proof of income (pay stubs, W-2, tax documents), and insurance policy information for the collateral property. Self-employed individuals may need profit-and-loss statements and a couple of years of tax returns. You can apply online, by phone, or in person. Double-check all information for accuracy to ensure a smooth process.
Step 4: Get an Appraisal
After submitting your application and choosing a lender, an appraisal will likely be required. Work with your lender to ensure you obtain the necessary appraisal and documentation. If your home appraises for enough to meet the 15% equity target, you’ve cleared a crucial hurdle for a HELOC.
Step 5: Prepare for Closing
Once approved for a HELOC and ready to proceed, you’ll sign the HELOC documents and handle any associated fees. Most lenders make funds available within three business days of closing. Before signing, fully understand all terms and conditions to avoid surprises and be prepared to utilize your HELOC.
Closing Costs and Fees
Closing costs on a HELOC are generally lighter on the wallet than a traditional home purchase or refinance. Appraisal fees, which can be the largest expense, usually fall within the $300 to $600 range. A title search, if required, might set you back $100 to $450. Then there are other potential costs, such as application, origination, and administrative fees, which can vary. Some lenders may even charge annual maintenance fees, which could go up to $250, as well as transaction, inactivity, or early termination fees.
Tax Benefits and Considerations
A nice counterpoint to the fees you will pay is the potential for a tax deduction. For the 2025 tax year, homeowners can deduct HELOC interest if the funds are used to improve their primary residence. It’s always wise to consult a tax advisor to ensure you’re making the most of these benefits and to confirm your eligibility for deductions. Your advisor can also keep tabs on how tax policy changes may affect the deduction in future years.
Recommended: Different Types of Home Equity Lending
Alternatives to HELOCs
A home equity loan is often confused with a HELOC but the two are different. Before you sign on to a HELOC, learn about this option and other popular alternatives.
Home Equity Loan
With a home equity loan, funds come all at once and you begin paying them back, with interest, immediately. The repayment term might be 10, 20, or 30 years and the interest rate will be fixed, so monthly payments will be predictable. Usually, you can tap into 85% of your home equity. Lenders often look for a credit score of 680 or more, but a score of 700+ could bring better rates. A home equity loan calculator can show you what size loan you might qualify for.
Cash-Out Refinance
A cash-out mortgage refinance replaces your existing mortgage with a new, larger one; you take the difference in cash. This might be the right option for you if you can score an interest rate that is an improvement on your current one (remember to factor in closing costs). To qualify, you need a 620 credit score and a DTI ratio under 43%. When comparing a cash-out refinance vs. a home equity line of credit, note that a refinance will leave you with a single monthly payment.
Personal Loan
A personal loan is a versatile, typically unsecured loan that you repay in regular, fixed installments over a term of two to seven years. The key advantage here is that your home is not on the line should you face financial challenges. Many lenders look for a credit score of 610 or more for a personal loan. While they are relatively quick to secure, do note that these loans often come with higher interest rates than either a HELOC or a home equity loan.
The Takeaway
If you’re contemplating a HELOC, it’s wise to consider the upsides and potential pitfalls. A HELOC is very flexible, allowing you to borrow in increments when funds are needed and only pay interest on what you borrow. It’s crucial to remember that your home is on the line if payments are missed. To get the most cost-efficient HELOC possible, always take the time to compare multiple lenders’ offers to ensure the best financial fit for your needs.
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 can be a smart way to finance a variety of projects and expenses, especially when the question of how much money you will need and when you will need it is up in the air. Many people use HELOCs to fund home renovations, consolidate higher-interest debt, or as a safety net to manage unexpected personal expenses.
What would the monthly payment be on a $100,000 HELOC?
The beauty of a HELOC is its flexibility. During the draw period, you may not borrow the full $100,000. And even if you do, you may only be on the hook for interest. 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.
Is an appraisal necessary for your HELOC?
You will likely need a home appraisal to secure a HELOC. The appraisal establishes your home’s current market value, which is essential for calculating the amount of equity you can access. The appraisal fee is usually $300 to $600, and it’s a critical step in the application process.
What might disqualify you from obtaining a home equity loan?
There are a few factors that could potentially disqualify you from obtaining a home equity loan. These include a low credit score, a high debt-to-income (DTI) ratio, and not enough equity in your home. Most lenders look for a credit score in the upper 600s, a DTI ratio of 50% or less, and a minimum of 20% equity in your home. If you don’t meet these criteria, you might need to work on improving your financial profile or explore other financing sources.
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-Q225-417
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