What is a home equity loan?
A home equity installment loan is a one-time loan secured by your home that provides homeowners the ability to borrow a single lump sum against the available equity in their home. Both the interest rate and monthly payments are fixed, ensuring you have a predictable repayment schedule for the life of the loan.
How much can I borrow?
A: Banks typically set a maximum loan-to-value (LTV) limit for how much you can borrow. At PNC, the maximum allowable LTV is 89.9%, and in some geographies and loan scenarios, it is lower. To figure out how much you can borrow, you must know three things: 1) your home's value, 2) the sum of all mortgage loans that you have on the property, and 3) the maximum LTV established by your lender. For example, let's assume a home is valued at $200,000, the maximum LTV is 89.9%, and there are $120,000 in mortgage loans already owed on the property. Just multiply the home's value ($200,000) by the LTV (89.9%) to calculate the maximum borrowing limit, which in this case is $179,800. Then subtract out the loans already on the property ($120,000) to know how much equity is remaining. In this example, you could borrow up to an additional $59,800.
What will my rate be?
Rate is calculated based on a variety of factors, including credit qualifications, loan-to-value, loan amount and other criteria. The best available rates include a discount for automatic payment from a PNC checking account.
Is my interest tax deductible?
Interest you pay on a loan that is secured by your primary residence may very well be tax deductible. You should consult with a tax advisor to determine whether this applies to your situation.
What property types are eligible for Home Equity Lines of Credit or Home Equity Loans?
Single-Family Primary Residence; Vacation, 1-2 Family Homes, Condos, and Townhouses
Is there a prepayment penalty if I payoff my Home Equity Loan?
For applications submitted prior to December 8, 2013, there may be a $350 prepayment penalty if you pay off your loan within 36 months of loan closing. For applications submitted on or after December 8, 2013, there is no prepayment penalty imposed for paying off your home equity installment loan account at anytime. However, certain closing costs may be paid by PNC on your behalf at the time of your loan closing. You may be responsible for reimbursement of those costs if you pay off your loan within 36 months of closing. If the loan is paid off 36 months after closing, repayment of these costs is not required.
How fast will I get my money?
Funds are normally disbursed on the fourth business day after you sign your loan documents. This is because Federal regulations require a 3-day rescission period during which time you have the right to cancel your loan.
We all know that buying and owning a home is a big responsibility. One that will affect your finances for years to come. So you'll want a lending partner who knows the drill. Who's got the people and passion to help you close the deal and achieve your home finance goals. A partner like us.
- We're experienced: We've been at this for a long time. More than 160 years, in fact. We originated more than $7 billion in home equity loans and lines of credit in 2011.
- We're sensible: Market conditions go up; market conditions go down. Through it all, we've thrived by sticking to sound financial practices, and by looking past financial fads.
- We're professional: We offer a full range of home equity products, paired with a team of professionals ready to provide guidance and answers whenever you need it - by phone, email, chat, or in person.
- We're ready to help: With PNC, you get a partner who's in it for the long run. We provide options to help you choose the products that are right for you.