Hawaii is an exceptional state to call home, and more than half of the state’s residents own a home, according to the U.S. Census Bureau. Home ownership is often rather lucrative for the state’s homeowners. Equity is often established initially when you make your down payment on the home’s purchase, and it grows over the years because of property value appreciation and regular mortgage payments. If you are like many homeowners who have owned their Hawaii homes for more than a few years, you may have access to tens of thousands of dollars in equity or more. A home equity line of credit provides you with an exceptional way to access the equity and to use it for a variety of beneficial purposes.

What to Expect From a HELOC

If you have never applied for a Hawaii home equity line of credit, or HELOC, you may not be certain what to expect. The loan application process for a home equity line of credit is similar to that of a standard mortgage, and you may be required to submit tax returns, bank statements, a recent appraisal on your home and several other items for loan approval. If your HELOC request is approved, you will have a short period of time in which you can make draws on your line of credit. This is typically accomplished through checks or a debit card that are linked to your HELOC. At the end of the withdrawal period, you will need to begin repaying the money you borrowed according to the terms of the HELOC. These loans generally have a long term, so you can reasonably expect affordable payments.

How Much Money Can You Get From a HELOC?

A common question people want to know is how much money they can have access to through their Hawaii HELOC. Some believe that they will have access to all of the equity in their home, but this is not true. Each loan program is different, but you can generally expect to access up to 70 to 75 percent of the home’s value, less the current liens in place. Any second liens will need to be paid off, and this is because the HELOC usually takes the second position behind the first lien mortgage on your home. Even with this limitation on the amount of equity you can borrow, most will be able to access a considerable amount of equity through a HELOC.

Who Offers Hawaii Home Equity Lines of Credit?

Exploring HELOC terms is a common step many homeowners make when thinking about applying for a new line of credit. You may want to review terms to ensure that the program meets your needs and that the payment will be affordable. Most HELOCs have a fixed term, and they often have competitive rates. You can learn more about HELOCs in Hawaii by exploring terms offered by some of the top lenders. This includes American Savings, Central Pacific Bank, First Hawaiian Bank, Bank of Hawaii and others. Because of the popularity of HELOCs, you can typically find them available through most banks and credit unions in the state.

As a homeowner, you may want to access your home’s equity to make repairs or to complete a full renovation. Perhaps you have plans to go on an amazing trip, to consolidate debts for monthly payment savings and more. With so many options available to you, you can easily see the benefit in applying for a HELOC. You can begin the process by determining how much equity you have available and by shopping for loan terms today.