With Pearl Hawaii’s Home Equity Line of Credit (HELOC), the possibilities are endless. For example, consolidate debt, fix up your home, pay tuition, or whatever you need. Pearl Hawaii offers affordable rates and flexible financing options. Additionally, the interest you pay may be tax-deductible (Consult your tax advisor for your personal situation).
WHY PEARL HAWAII’S HELOC?
As property values in Hawaii grow, equity in your home is also available. Pearl Hawaii’s HELOC can help you cover larger expenses. Of course, it doesn’t make sense to refinance your existing mortgage unless you have a high rate. If you have a lower interest rate on your existing home loan, tapping into the existing equity with a Home Equity Line of Credit (HELOC) may make the most sense to help you cover larger expenses.
Pearl Hawaii’s HELOC is a line of credit. It is very similar to how a credit card which allows you to borrow against a limit in increments and as many times as needed.
For example, your home is valued at $1 million. Your existing mortgage is $500,000. You’re approved for a HELOC with an 80% LTV (loan-to-value) of your home’s equity. You can be approved for a HELOC with a limit of up to $300,000. The amount you receive is dependent on your creditworthiness, which is the extent to which a person is considered suitable to receive monetary credit based on their credit score.
$1,000,000 (estimated home value) x 80% (Loan-to-Value or LTV) = $800,000
$800,000 (80% LTV of your estimated home value) – $500,000 (existing mortgage balance) = $300,000 (you possible line-of-credit)
Most HELOCs have variable interest rates. Variable means the rate will go up or down with the market. As a result, variable rates leave you vulnerable to rising interest rates so be sure to take this into account. Sometimes you can catch a special promotional fixed rate or opt for a fixed rate option. A fixed rate is when the Annual Percentage Rate (APR) does not change for a specific period of time.
Access To Your Home’s Equity, When You Need It
A Home Equity Line of Credit lets you tap into your home equity as needed. You can pay it down and re-borrow against it as you see fit. A line-of-credit works well if you want a safeguard to fund large, unexpected, or ongoing expenses. You can reduce interest costs by paying down the balance between draws.
GET MORE WITH A PEARL HAWAII HOME EQUITY LINE OF CREDIT
With a Home Equity Line of Credit, you can use your home’s value to get a much lower rate. Plus, it’s perfect if you’ve got an upcoming project, but don’t know exactly how much you’ll want to borrow. Mainly, you will have a continuous source of cash whenever you need it.
This provides homeowners with the opportunity to use the equity to obtain a credit limit of up to $300,000 (subject to the loan-to-value ratio, not exceeding 80% or 90%). Also, the convenience of writing checks is available.
HELOC SPECIAL BENEFITS
Credit lines up to $300,000.
Great for home renovations.
The initial advance is $10,000.
Additionally, there are no annual fees.
Tax-deductible (Consult your tax advisor for your personal situation).
Experienced specialists to help you through the application process.
Overall, great if you want the flexibility to use your funds over time.
HOW DOES A FIXED RATE HELOC WORK?
A Home Equity Line of Credit (HELOC) functions as a revolving line of credit secured by your home’s equity. Typically, a HELOC has a variable interest rate, which means the interest you pay can fluctuate with market conditions. A fixed-rate HELOC works a little differently. Because it is a fixed interest rate, your loan is shielded from interest rate hikes.
WHAT CAN I USE A HOME EQUITY LINE OF CREDIT FOR ?
CONSOLIDATE
Unlike a debt consolidation loan, a fixed-rate HELOC doesn’t limit you to just one withdrawal. You can even take out a fixed-rate advance on the entire HELOC amount, and with the fixed interest rate, you’ll know exactly what your payments will be so you can plan for them.
RENOVATE
A fixed-rate HELOC can be the perfect answer when you start your next remodeling project. Throughout construction, the interest rates on a variable-rate HELOC could fluctuate, landing you at a higher rate while the renovation is in progress. When it comes to home renovations, converting part of your HELOC to a fixed rate can help your budget.
EDUCATE
If you have to pay for your or your child’s education, a fixed-rate HELOC can help you pay for the added expense. While using the equity of your home, you can pay down the amount in affordable payments, making it more budget-friendly.
CELEBRATE
If you have been saving for a large expense like a dream vacation, move, family celebration, or a new car, a fixed-rate HELOC can help cover the costs. Oftentimes, a fixed-rate HELOC tends to be lower than other loan rates, saving you money in the long run.
UNEXPECTED EMERGENCIES
Disaster often strikes without warning, and when it happens to your health, the expensive medical bills you’re left with could necessitate a loan. An unsecured emergency loan is one option, but a fixed-rate HELOC may be cheaper and easier to pay off.
GET STARTED
Overall, a fixed-rate HELOC is considered a hybrid of a Home Equity loan and a traditional Home Equity Line of Credit (HELOC). It allows you to lock in at a fixed interest rate and that rate is the same during the draw period.
*LTV - Loan to Value. The Introductory Annual Percentage Rate (APR) of 5.75% for the first 36 months of the Introductory Period. After the Introductory Period, the rate will adjust to the standard annual-adjustable interest rate in accordance with your Home Equity Credit Agreement. The current non-introductory fully indexed variable APR is 8.25% for 80% LTV; rate applicable 4/1/2024 through 3/31/2025. The Current Variable Index Rate shown is current as of 4/1/2024 and will not exceed 18% APR. Total HELOC loan amount received, rate, and terms are subject to credit approval. Offer is valid for qualifying applications to new Home Equity Lines of Credit. Only improved owner-occupant properties on Oahu accepted as collateral. Minimum credit line is $5,000 and the maximum credit lines for an 80% LTV Fee-Simple Owner-Occupied Property, the lesser of $300,000 or 80% LTV minus the balance of your existing mortgage. Refinancing of existing Pearl Hawaii Federal Credit Union Home Equity Lines of Credit is not allowed. Membership required. Borrower must maintain fire, hurricane, and flood (if in flood hazard zone) insurance on the property and Pearl Hawaii Federal Credit Union must be a loss payee on your Home Insurance policy. There are no points, pre-payment penalties, or annual fees. Closing Cost Fees that may be included: title insurance fee, document preparation fee, SRA\appraisal fee, appraisal review fee, trust review fee, recording fees, application fee, or flood verification fee. Closing cost fees incurred will be dependent on the amount borrowed and will vary based on the member’s situation and are estimated between $200 to $5,000. For the introductory rate, the initial advance must be $10,000 or more. For the Current Variable Annual Rate, the initial advance must be $1,000 or more. Other conditions and restrictions may apply. Any existing junior liens from financial institutions other than PHFCU must paid off and may be paid by an initial draw from the new Home Equity Line of Credit account. Visit any of our branches for more information. May not be used for a business loan. The borrower must be 18 years of age or older. Promotion is subject to change or cancellation without prior notice. Minimum payment for 36 month term fixed intro rates and for current variable annual rate is $100.00. NMLS #472169. Federally insured by NCUA. HELOC EARLY DISCLOSURE.
Home Equity Lines of Credit
Type
APR* AS LOW AS
Based on an A-Tier rate of $10,000
80% Annual Adjustable
8.25%
Annual Adjustable Rate applicable 4/1/2024 through 3/31/2025. Thereafter, the interest rate will adjust in accordance with the terms of the Credit Agreement. Max Loan Amount up to $300,000. Max Loan to Value up to 80% . 121 payments of $100.00 and 1 estimated final payment of $85.11.
Annual Adjustable Rate applicable 4/1/2024 through 3/31/2025. Thereafter, the interest rate will adjust in accordance with the terms of the Credit Agreement. Max Loan Amount up to $150,000. Max Loan to Value up to 90%. 121 payments of $100.00 and 1 estimated final payment of $85.11.
*Annual Percentage Rate (APR). The loan rates advertised are “A” Tier loan rates in our Multi-Tiered Loan Rate Program. Other rates and terms are available. Other terms, conditions, and restrictions may apply. Visit any of our branches for more information. It may not be used for a business loan. The borrower must be 18 years of age or older. Promotion is subject to change or cancellation without prior notice. Only improved owner-occupant properties on Oahu accepted as collateral. You must maintain fire, hurricane, and flood (if in flood hazard zone) insurance on the property that secures your Home Equity Line of Credit Agreement. PHFCU must be listed as a loss payee on the Home Insurance policies. There are no points, pre-payment penalties, or annual fees. Closing Cost Fees that may be incurred: application fee, title insurance fee, document preparation fee, SRA\appraisal fee, appraisal review fee, trust review fee, recording fees, flood verification fee. Closing cost fees incurred will be dependent on the amount borrowed and will vary based on the member’s situation. Payment example does not include possible fees, insurance, or closing costs that may occur and will range dependent on your situation. Maximum loan amount: $300,000. The borrower must be 18 years of age or older. NMLS 472169. HELOC EARLY DISCLOSURE.
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