HONOLULU (HI Now) - Homeowners looking for a flexible way to tap into their property’s value have a powerful tool at their disposal: the Home Equity Line of Credit, or HELOC. Central Pacific Bank (CPB) provided a detailed look into what a HELOC is, how it works, and the various benefits it offers, positioning it as a strategic financial solution for both planned and unexpected expenses.
Robert Nakamoto, VP and Mililani Branch Manager at Central Pacific Bank, described a HELOC as a revolving line of credit that allows homeowners to borrow money using the equity they’ve built in their home. “You’re given a maximum credit limit and you can borrow what you need, when you need it, and you only pay interest on the amount you actually use monthly, allowing you to pay back what you borrowed over time.” This structure provides a high degree of financial flexibility, as borrowers can withdraw funds during an initial “draw period,” which typically lasts up to 10 years.
The uses for a HELOC are diverse and can be tailored to a homeowner’s specific needs. According to Nakamoto, a HELOC can be used for a variety of purposes. “Whether you’re financing home renovations, consolidating high-interest debt to save money, or covering educational expenses, a HELOC provides a flexible way to manage both planned and unexpected costs,” he said.
Nakamoto added that the HELOC can be a valuable financial safety net. “You never know when an emergency expense will come up, and the HELOC is a type of safety net that’s there for you.”
Central Pacific Bank is a HELOC expert and recently was named the top bank in Hawaii by Forbes for its exceptional customer service, a benefit particularly valuable for first-time applicants.
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HELOCs also typically feature lower interest rates compared to unsecured loans or credit cards. “One of the biggest benefits is the lower interest rates,” Nakamoto stated. “It’s a great way to save money, especially when consolidating higher-rate debt.”
CPB’s specific HELOC offers include a range of attractive features:
- Great introductory rates.
- No down payment required.
- No third-party closing costs for owner-occupied loans up to $400,000.
- Credit lines up to $1,000,000 (with appraisal and income verification).
- Easy automatic payment options.
- Up to $500 in closing fees paid for customers who switch a loan to CPB.
To be eligible for a HELOC with CPB, applicants must have sufficient equity in their home (meaning the property is worth more than the outstanding mortgage), meet minimum credit score and income qualifications, and ensure the property is either owner-occupied or a qualifying second home.
“Eligibility is based on having enough equity in your home and meeting our credit and income requirements,” Nakamoto said. “Certain property types, such as timeshares or condotels and properties currently under construction are excluded.”
Applying for a HELOC with Central Pacific Bank is a straightforward process. Potential borrowers can start their application online at cpb.bank or visit their nearest branch. The application requires documentation about employment, income, and the property.
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Following submission, a loan representative will contact the applicant within two business days to guide them through the next steps, allowing homeowners to start planning how to best utilize their new line of credit.
Then start planning how you’ll use your money! Ready to see how Central Pacific Bank can help you reach your financial goals? We got you – visit cpb.bank today!
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