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Home Equity Line of Credit - HELOC Refinance

A smarter way to refinance your home

Apply now for a HELOC

Get started by applying for your HELOC online.

Apply to refinance with a HELOC
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Should I refinance with new mortgage terms?

If you owe more than $400,000 on your existing mortgage, a mortgage refinance could be the smarter way to refinance.

Learn more about a mortgage refinance

We reinvented the refi. With a HELOC.

Pay off your existing first mortgage with a Bankoh Home Equity Line up to $400,000 and enjoy rates close to or lower than conventional mortgage rates—with virtually no closing costs3.

Special FRLO rates:
2.50% APR5 for 15 years6
3.00% APR5 for 30 years6

No mortgage? No problem. Enjoy the same low rates with virtually no closing costs when you tap into your home's equity up to $400,000.

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3 Available for a qualifying Bankoh Home EquityLine secured by first lien on property located in the State of Hawaii only. Escrow services may be required if your request will pay off an existing mortgage. Escrow costs greater than $175 may be part of your closing costs. In some cases, the title company may determine an ALTA policy is required, resulting in a cost ranging from $350 to $2,050. Please consult your tax advisor regarding deductibility of interest charges on a new Bankoh Home EquityLine. Certain requirements and restrictions may apply. Subject to bank’s approval including but not limited to reviews of credit history, repayment ability and collateral. Programs and guidelines are subject to change.

** Annual Percentage Rate
More about

Applying with SimpliFi

With SimpliFiSM by Bank of Hawaii:

  • Start your application from the comfort of home
  • Speak with our local lending experts anytime throughout the process
  • Use your mobile, tablet or desktop device to apply

When you first click to apply, you'll be asked for some basic information to get started. If you are an existing customer with a Bank of Hawaii checking or savings account, we can automatically fill in some of your information to make the process easier and faster. All you need is your ATM or debit card along with your account PIN or e-Bankoh User ID and password to get started.

Once you've started your application, you can save your information and come back at any time to resume your application

What you'll need initially:

  • Social Security Number or Tax Identification Number
  • Valid email address for all applicants
  • Property information that will secure your loan (including estimated property value)
  • Income information

What is a HELOC?

A HELOC is a type of loan that allows a homeowner (like you) to borrow against the equity in your home. HELOCs function much like a credit card: You can withdraw as many times as you like, within your credit limit. (Some lenders also have a minimum draw amount) As any outstanding balances are paid, the amount of credit available is also replenished.

This feature exists for a limited amount of time, called the draw period, which varies in length depending on the term set by the lender. During the draw period, you may only be required to make interest payments, but can make additional payments toward the principal if you wish. After the draw period, you enter into the repayment period, during which you can no longer draw on your line and your required monthly payments increase to include interest and principal.

What makes HELOCs attractive to most homeowners is that typically they come with a low introductory promotional interest rate, which generally lasts for one to four years. After the promotional rate ends, the interest rate typically increases to a variable rate (aka the market rate) and fluctuates as the prime index rate adjusts, because the interest rate is tied to that index. Typically your variable rate will include both the floating index rate portion and an additional "spread" or "margin" above the index rate.

Read our articles The essential steps to follow when getting and using a HELOC and 3 Good uses for a HELOC

Understanding HELOC rates and options

HELOCs typically come with a low introductory promotional interest rate, which generally lasts for one to four years. After the promotional rate ends, the interest rate usually increases to a variable rate (aka the market rate) and fluctuates as the prime index rate adjusts, because the variable rate is tied to the index.

Typically your variable rate will include both the floating index portion and an additional "spread" or "margin" above the index. Over the years, the interest rate on your HELOC may change many times.

Read our article The essential steps to follow when getting and using a HELOC

Some HELOCs come with a fixed-rate loan option, or FRLO, allowing you to convert all or part of the balance of your line of credit into a loan with a fixed interest rate. This can help you lock in a low rate, so you won’t have to worry about a variable rate going up in the future. There may be a limit on the number of fixed-rate loan options you can have at one time—usually three to five—and you'll want to inquire about whether conversion involves any fees.

Read our article 3 reasons you might want to convert your heloc balance to a fixed rate loan option

Planning for your HELOC

When applying for a HELOC, it's smart to plan, and then plan some more.

How much do you need to borrow? In many cases, a smaller line of credit can give you more of a buffer if your financial situation changes, but it all depends.

How will you pay off a HELOC? The required monthly payments at the beginning of your HELOC's term will likely be relatively small, because you generally are only required to repay the interest on the loan, but that monthly payment will grow larger once you reach the repayment period of the loan and are paying off the principal as well.

If you're planning on selling the home at some point, will the cost of the sale cover the HELOC, as well as closing costs? Also think about the life stages you may be entering during the term of the HELOC, and the financial impact that might have.

Read our article The essential steps to follow when getting and using a HELOC

How to use a HELOC to refinance

Traditionally, homeowners use home equity lines of credits, or HELOCs, for home improvement projects, debt consolidation and to cover educational costs such as school tuition. But another smart use of a HELOC can be to pay off the remaining balance of your existing mortgage.

Even though you're taking out a line of credit rather than another closed-end mortgage, you can benefit from many of the same features as a conventional refinance would offer, including:

  • Interest rates that are competitive with current mortgage rates.
  • Lower closing costs than a typical mortgage refinance.
  • Repayment terms that are more convenient for your goals and budget—anywhere from 3, 5 or 7 years up to 15, 20 or 30 years.
  • The ability to access cash by applying and qualifying for a HELOC larger than the remaining balance on your mortgage.

Read our article How to save money on your mortgage refinance

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