A Home Equity Line of Credit (HELOC) works similarly to a credit card. After being approved for a HELOC, you have access to a specified amount of credit secured by the equity in your home during your ten year draw period. Depending on the HELOC product you were approved for, you may be required to pay interest only or a portion of your principal plus interest during the draw period. This is followed by a fully amortized twenty year repayment period. HELOC rates are variable and can change over the life of the credit line. We provide qualified Hawaii homeowners with HELOCs up to $1,000,000.

Unlike a second mortgage, a HELOC provides you with funds that can be accessed at any time during the draw period. Second mortgages, on the other hand, provide a one-time lump sum payment of funds. A HELOC can allow you to use as much or as little credit as you need to make purchases or complete projects. If you think you will need additional cash resources over a period of time, a HELOC may be a good option for you.

A HELOC can be a good option because home equity lines commonly have lower interest rates compared to other credit products since it is a secured line that uses your home as collateral. You can borrow the money for immediate expenses and pay the balance down over time. Many homeowners use HELOCs for home improvement projects or even college tuition payments.

HELOC rates are generally variable. This means your rate is likely to change over the period of time you have your HELOC open.

Lenders generally require a minimum of 15-20% equity in the property, which needs to be determined by an appraiser. For example, your home has a market value of $500,000 and your mortgage balance is $300,000, your equity is valued at $200,000, or 40%.

Applying for a HELOC for your Hawaii home is simple with the help of an experienced Personal Banker from ASB; online applications are also available. Speak with a Personal Banker today to learn more about ASB Hawaii HELOC rates and how a line of credit may be the best option for your financing needs.

ASB will process your application, and if approved, have the loan documents ready to schedule your signing appointment within 30 calendar days of receiving the completed application with all necessary documentation. This does not apply to the following: 1) applications for lines greater than $400,000; 2) applications that require an appraisal; 3) applications made simultaneously with an application for a residential first mortgage loan; 4) application delays relating to title, trust, insurance, and property condition reports; or 5) application delays caused by business disruptions.

You can access your Equity Express Home Equity Line of Credit by check, at a branch, or through Online Banking.

To exercise the FRELO, you may visit a branch to sign an Addendum.

The interest on a Home Equity line may be tax deductible if it meets the IRS guidelines. Please see your tax advisor about your situation.

APR stands for “Annual Percentage Rate” and represents the price you pay to borrow money. APR is a broader measure than interest rate because it includes the interest rate plus other costs such as lender fees, closing costs and insurance. You can use APR to compare loans offered by different lenders when shopping for a mortgage loan.

For example, based on a purchase price of $500,000; loan amount of $400,000 (20% down payment; 80% loan-to-value); interest rate of 4.00% and 1.00% points, the monthly principal and interest payment on a 30-year fixed rate mortgage would be $1,909.66 and an APR of 4.119%. Keep in mind your mortgage loan monthly payment will be higher as lenders typically include property tax and insurance costs.

Borrower situations vary; contact a loan officer who can provide you with a free analysis.

Make every effort in making your monthly mortgage loan payment on time in accordance to your mortgage loan and note. If you have automatic payment from a checking account, be sure to have sufficient funds before the date of the debit. If you make your mortgage loan payments online, be sure to give yourself a lead time for the transaction to occur before the due date. If you experience challenges with your automatic payment, your online bill payment, or are unable to pay your mortgage, contact our Customer Banking Center immediately at (808) 627-6900 or our toll-free number at (800) 272-2566.

When you bought your home, you likely signed up for the best mortgage loan available at the time. Depending on when you purchased your home and how much income you were earning, you may be on the hook for a large mortgage loan with a high interest rate for many years to come. On the other hand, some Hawaii residents choose to purchase a home using an adjustable-rate mortgage loan. If you bought a home with an ARM, you may be facing variable interest rates that change each year after the initial fixed portion has expired.

Both of these mortgage loan scenarios might lead you to look into a mortgage loan refinance. As interest rates and family situations change, your mortgage loan for your Hawaii home may not be the best fit for you. A refinance mortgage loan allows you to take advantage of better loan terms or interest rates to pay off the remaining cost of your home. Some other reasons to consider refinancing your mortgage loan include:

• Loan Rates are Down: If Hawaii mortgage loan rates have fallen significantly since you purchased your home, a refinance could potentially save you a lot of money over the life of your loan.
• Your Credit Score is Up: Your credit score plays a big part in the interest rate you receive when buying a home in Hawaii. If your score has increased since you bought your home, you may pay less in interest with refinance mortgage loan rates.
• Interest Rates are Rising and You Have an Adjustable Mortgage loan: With an ARM loan, your interest rate changes according to an index. Usually, this change is done annually, so if interest rates are trending upward, a refinance home loan may be a good option to secure a fixed rate.
• Home Value Increased: If your home value has seen a large increase over the years, you may be able to get additional funds using a cash-out refinance.

There are two main advantages to refinance home mortgage loans in Hawaii with a rate or term refinance. The first is to lower your interest rate. A lower interest rate leads to lower monthly payments and a lower overall cost of the loan. If you use a refinance mortgage loan to lower your interest rate, you could potentially save hundreds or thousands of dollars on the cost of your Hawaii home over the life of the loan.

The second advantage to a refinance is to cut the loan term shorter. If you are able to take advantage of a lower interest rate, you may be able to adjust your monthly payment to pay more money towards the principal of your mortgage loan. This allows you to pay down the remaining balance of your mortgage loan faster.

In addition to advantages from a rate or term refinance, Cash-out Refinance programs have their own unique advantage of allowing you to receive cash for part of the value of your home. Unlike taking advantage of a lower interest rate, a Cash-out Refinance allows you to use the equity you currently have in your home. The additional funds from a Cash-out Refinance can be used for home improvement, investment, or other planned expenses.

APR stands for “Annual Percentage Rate” and represents the price you pay to borrow money. APR is a broader measure than interest rate because it includes the interest rate plus other costs such as lender fees, closing costs and insurance. You can use APR to compare loans offered by different lenders when shopping for a mortgage loan.

For example, based on a purchase price of $500,000; loan amount of $400,000 (20% down payment; 80% loan-to-value); interest rate of 4.00% and 1.00% points, the monthly principal and interest payment on a 30-year fixed rate mortgage would be $1,909.66 and an APR of 4.119%. Keep in mind your mortgage loan monthly payment will be higher as lenders typically include property tax and insurance costs.

Ask your ASB Loan Officer for more information about investment properties and second/vacation homes. ASB has many options to help you add to your real estate portfolio.

If you’re getting ready to purchase a second home in Hawaii, there are many factors to consider. Most importantly, you will want to decide what type of mortgage to use for the purchase. Unlike your first home, you may not be able to take advantage of certain loan programs for a second home. First time home buyer loans, for example, usually require a lower down payment than a conventional loan. However, since you are purchasing a second property, you are unlikely to be able to use a first-time home buyer loan to make the purchase and will need to make a sizeable down payment. The best way to learn what you will need to purchase your second home is to speak with a loan officer with experience in investment properties, like the team at ASB.

If you’re a first time home buyer in Hawaii, you likely have a lot of questions about finding and applying for your first mortgage loan. Let the mortgage loan experts of ASB help guide you through the home buying process. Your first step to securing the house of your dreams as a first time home buyer is to understand how much you can afford. Consider getting pre-qualified for a mortgage loan so you know how much you might be able to spend on a home.

Start by speaking with the local Hawaii mortgage loan experts from ASB. Our team of knowledgeable loan officers can help you better understand our first time home buyer programs. Whether you decide to purchase your home using a Fannie Mae HomeReady® loan or Combined First and Second Mortgage, our mortgage loan team is ready to help you make your first home purchase in Hawaii.

There are a few items you must consider before applying for a mortgage loan. We recommend that you have a good understanding of how much you want to borrow, what your credit score is, and that your financial information is readily available.

Getting pre-qualified is highly recommended since many sellers require a pre-qualification letter from a reputable lender. Plus, during the pre-qualification process your ASB Loan Officer will help you determine the appropriate price range before you go house hunting.

A residential mortgage loan is secured by a residential real estate property. Therefore, sufficient hazard insurance in case of fire, hurricane, flood and other disasters is required at all times. You must obtain and pay for the premiums if the mortgage loan is for a purchase of a new home; you must obtain sufficient coverage if the mortgage loan is for a refinance of an existing home. After mortgage loan closing and the mortgage loan account is established, an escrow account is used to collect the premiums monthly as part of your mortgage loan payment. A conventional 1^st mortgage loan amount over 80% loan-to-value (LTV) requires private mortgage insurance (PMI), which is paid by the borrower and protects the lender from borrower default on loan payments. PMI cancellation is typically permitted: 1) borrower-requested cancellation, and 2) lender-required cancellation under the Homeowners Protection Act of 1998. For a borrower-requested cancellation, the borrower must provide a written request for cancellation to the lender on the date that the mortgage loan balance is first scheduled to reach 80% of the original value of your home. Certain conditions apply for PMI cancellation.

We typically ask for two years of W-2s and tax returns as well as other documents to verify the information that you provide to us. Every applicant is different, so please contact a loan officer to discuss your situation.

• Bank IRAs:

  • Offered through American Savings Bank

  • FDIC-insured accounts

  • Fixed CD term or Savings available

  • Available through branches

• Brokerage IRAs^†:

  • Offered through American Savings Investment Services

  • May invest in stock, bonds, mutual funds and annuities

  • Tailored to your investment strategy

  • Not FDIC insured

Contact a Financial Advisor to learn more about what products may fit your needs.

• Bank IRAs:

  • Offered through American Savings Bank

  • FDIC-insured accounts

  • Fixed CD term or Savings available

  • Available through branches

• Brokerage IRAs^†:

  • Offered through American Savings Investment Services

  • May invest in stock, bonds, mutual funds and annuities

  • Tailored to your investment strategy

  • Not FDIC insured

Contact a Financial Advisor to learn more about what products may fit your needs.

Traditional pensions are commonly referred to as Qualified Plans, and there are two types: Defined-Benefit and Defined-Contribution. Defined-Benefit Plans are funded by employer contributions and are guaranteed by the Pension Benefit Guaranty Corporation (PBGC). Employee-sponsored retirement plans such as 401(k), 403(h) and 457 plans are called Defined-Contribution plans. Defined-Contribution plans are funded in large part by employee contributions and are not guaranteed by the PBGC.

Converting your IRA may have significant tax consequences. Before you take this step, be sure to consult with a tax professional.

If you are retiring or changing jobs, ask your employer to arrange for a "direct rollover" of your money into a new IRA account with us, and you won’t pay the mandatory 20% withholding tax.

You can also do an IRA-to-IRA rollover. Complete the rollover within 60 days from the date you receive the assets from your old IRA to qualify. Just go to your financial institution and close your IRA, then bring the check to us. The IRS limits the number of these rollovers to one in a 12-month period.

Contributions into a traditional IRA can be tax deductible and can lower your taxable income. Your earnings also grow tax deferred. However, contributions are not tax-deductible with a Roth IRA. For more information, visit our Personal IRAs Comparison page.

Traditional IRAs or Roth IRAs are considered Bank IRAs when you put your funds into a savings or CD account. These IRAs are offered through American Savings Bank branches and are FDIC-insured.

Traditional IRAs or Roth IRAs are considered Brokerage IRAs when you put your funds into investments such as mutual funds, stocks and bonds through a broker-dealer and are tailored to your preferred investment strategy.

Make an appointment with a banker to learn more.

Yes there are annual contribution limits for a Traditional and Roth IRA.

Traditional and Roth IRAs have early withdrawal penalties that depend on the specific account terms. Also, withdrawals made before 5 years and before the age of 59 1/2 may be subject to an additional IRS penalty. 

For a traditional IRA, you must begin to take distributions by April 1^st of the year after you become 72 years old. A Roth IRA has no distribution requirements while you're alive, but beneficiaries will be subject to distribution rules after you pass. 

Converting your IRA may have significant tax consequences. Before you take this step, be sure to consult with a tax professional.

If you are retiring or changing jobs, ask your employer to arrange for a "direct rollover" of your money into a new IRA account with us, and you won’t pay the mandatory 20% withholding tax.

You can also do an IRA-to-IRA rollover. Complete the rollover within 60 days from the date you receive the assets from your old IRA to qualify. Just go to your financial institution and close your IRA, then bring the check to us. The IRS limits the number of these rollovers to one in a 12-month period.

Contributions into a traditional IRA can be tax deductible and can lower your taxable income. Your earnings also grow tax deferred¹. However, contributions are not tax-deductible with a Roth IRA. For more information, visit our Personal IRAs Comparison page.

Traditional IRAs or Roth IRAs are considered Bank IRAs when you put your funds into a savings or CD account. These IRAs are offered through American Savings Bank branches and are FDIC-insured.

Traditional IRAs or Roth IRAs are considered Brokerage IRAs when you put your funds into investments such as mutual funds, stocks and bonds through a broker-dealer and are tailored to your preferred investment strategy.

Make an appointment with a banker to learn more.

Yes there are annual contribution limits for a Traditional and Roth IRA.

Traditional and Roth IRAs have early withdrawal penalties that depend on the specific account terms. Also, withdrawals made before 5 years and before the age of 59 1/2 may be subject to an additional IRS penalty. 

For a traditional IRA, you must begin to take distributions by April 1^st of the year after you become 72 years old. A Roth IRA has no distribution requirements while you're alive, but beneficiaries will be subject to distribution rules after you pass. 

If you are retiring or changing jobs, ask your employer to arrange for a "direct rollover" of your money into a new IRA account with us, and you won’t pay the mandatory 20% withholding tax.

You can also do an IRA-to-IRA rollover. Complete the rollover within 60 days from the date you receive the assets from your old IRA to qualify. Just go to your financial institution and close your IRA, then bring the check to us. The IRS limits the number of these rollovers to one in a 12-month period.

Converting your IRA may have significant tax consequences. Before you take this step, be sure to consult with a tax professional.

A Traditional IRA or Roth IRA are considered Bank IRAs when you put your funds into a savings or CD account. These IRAs are offered through American Savings Bank branches and are FDIC-insured.

A Traditional IRA or Roth IRA are considered Brokerage IRAs^† when you put your funds into an investment such as mutual funds, stocks and bonds. These IRAs are offered through American Savings Investment Services, are not FDIC-insured and are tailored to your preferred investment strategy. Contact a Financial Advisor to learn more about what products may fit your needs.

Contributions into a traditional IRA can be tax deductible and can lower your taxable income. Your earnings also grow tax deferred¹. However, contributions are not tax-deductible with a Roth IRA. For more information, visit our Personal IRAs Comparison page.

Traditional and Roth IRAs have early withdrawal penalties that depend on the specific account terms. Also, withdrawals made before 5 years and before the age of 59 1/2 may be subject to an additional IRS penalty. 

For a traditional IRA, you must begin to take distributions by April 1^st of the year after you become 72 years old. A Roth IRA has no distribution requirements while you're alive, but beneficiaries will be subject to distribution rules after you pass. 

• Bank IRAs:

  • Offered through American Savings Bank

  • FDIC-insured accounts

  • Fixed CD term or Savings available

  • Available through branches

• Brokerage IRAs^†:

  • Offered through American Savings Investment Services

  • May invest in stock, bonds, mutual funds and annuities

  • Tailored to your investment strategy

  • Not FDIC insured

Contact a Financial Advisor to learn more about what products may fit your needs.

Contributions into a traditional IRA can be tax deductible and can lower your taxable income. Your earnings also grow tax deferred. However, contributions are not tax-deductible with a Roth IRA. For more information, visit our Personal IRAs Comparison page.

Yes there are annual contribution limits for a Traditional and Roth IRA. Talk with a Financial Advisor to learn more.

Traditional and Roth IRAs have early withdrawal penalties that depend on the specific account terms. Also, withdrawals made before 5 years and before the age of 59 1/2 may be subject to an additional IRS penalty. 

For a traditional IRA, you must begin to take distributions by April 1^st of the year after you become 72 years old. A Roth IRA has no distribution requirements while you're alive, but beneficiaries will be subject to distribution rules after you pass.