Home Equity Line of Credit

Tap into your home's value with a home equity line of credit

Your home is an asset that can help you reach other financial goals.  If you've got equity in your home, you could qualify for a Home Equity Line of Credit.  You could use that line of credit for things like home improvements, debt consolidation, vacation, college tuition and more.
 

For more information, please call 808.935.6665

TERMS AND DISCLOSURES
*APR=Annual Percentage Rate.

¹The minimum home equity line of credit ("HELOC") is $10,000 and the maximum HELOC is $250,000.  Maximum Loan to Value (LTV) is 80% (Appraised value or County of Hawaii Real Property Tax Assessment) or the lesser of $250,000 minus the balance of your existing mortgage.

The 5-year (the "Introductory Rate Period") HELOC Introductory Rate of 4.99% (the "Introductory Rate APR"), is valid for applications that are received and approved between November 1, 2025 and December 31, 2025.  Big Island Federal Credit Union reserves the right to modify or terminate this promotional rate offer at any time.  After the Introductory Rate Period expires, your Annual Percentage Rate ("APR") will vary based on changes in the index, and the applicable Current Variable Index Rate (as described below) will apply.  This offer applies to new Home Equity Lines of Credit (HELOC).  The 5-year Introductory Rate Period will remain in effect until expiration of the Introductory Rate Period.

The Current Variable Index Rate is based on the 3-month Treasury Bill Rate (as published by the Federal Reserve Bank of St. Louis (TB3MS)) plus a margin not to exceed 4.50% rounded up to the nearest 0.25%, adjusted each April 1st and October 1st.  In no event will the APR be less than 4.50% (minimum floor) or more than 18% (maximum cap).  After the first rate adjustment following the Introductory Rate Period, the rate will not increase or decrease by more than 2.00 percentage points at each subsequent adjustment.  To receive the discounted Introductory Rate APR, you must take an initial credit advance of at least $10,000 and $500 for each subsequent advance (also called a "draw").  There are no annual fees.

The line of credit has a 5-year draw period during which you may obtain credit advances.  Following the draw period, you will have a 15-year repayment period during which the outstanding balance will be amortized over a 20-year period and no additional credit advances will be permitted.

During the draw period, your minimum monthly payment will be the greater of $200.00 or the accrued interest charges for that period.  During the repayment period, your minimum monthly payment will be calculated to amortize the balance over a 20-year period.  If your outstanding balance is less than $200.00, your payment will be the full amount you owe.  Because the amortization period is longer than the repayment period, your minimum payments may not be sufficient to fully repay the principal that is outstanding on your HELOC.  If they are not, you will be required to pay the entire outstanding balance in a single payment.  This is called a balloon payment.

The property that is used to secure the HELOC must be your primary residence.  The Credit Union will only accept first and second mortgage lien positions on fee simple estates for one-to-four family dwellings located on the Island of Hawaii.  You must maintain hazard insurance on the property with coverage amounts acceptable to the Credit Union, including hurricane, wind, fire, and earthquake coverage.  Flood insurance is also required for properties located in a flood hazard zone.  The property must not be located in Lava-Flow Hazard Zone 1 and 2 as designated by the United States Geological Survey.

As a benefit to our members, Big Island Federal Credit Union will waive certain third-party closing costs up to $2,000.  However, if you terminate or pay off the HELOC within 24 months of account opening, you will be required to reimburse the Credit Union for these waived closing costs up to $2,000.  If an appraisal is required, you must pay the appraisal fee at pre-approval, estimated to be between $650 and $850.  If the property is held in trust, you must pay the trust review fee upon pre-approval, estimated to be between $300 and $500.

This promotional offer is subject to change or termination by Big Island Federal Credit Union at any time.  This offer does not apply to existing or refinanced BIFCU HELOC loans.  Additional restrictions apply.  Member must be a Hawaii resident, must qualify under Big Island FCU's membership and lending guidelines, and must be a member in good standing with Big Island FCU.  All applications are subject to credit approval.  A non-refundable $1.00 fee is required to establish membership.  A minimum $50.00 is required to open a Savings Account.