Learn how to navigate the process with confidence.
Refinancing into a lower rate may lower your monthly payment and save you money over the life of your loan.
When you refinance you can tap into the equity in your home to pay down debt or get cash out to pay for home improvements or larger expenses.
Change the length of your loan to pay it off faster or change from a variable rate to a fixed rate.
PNC offers a variety of loan programs to suite multiple needs such as VA, FHA, Jumbo and more.
PNC offers a variety of refinance loans that address a variety of needs. When you apply, a Mortgage Loan Officer will help you determine the loan that's best for you. Continue reading to understand the differences between loans and when you would choose one over another.
If you’re looking for a loan where the monthly payment will not change and will be easy to budget, explore a Fixed Rate Loan.
If you’re refinancing a home and want lower payments than a fixed rate mortgage may provide, consider an adjustable rate mortgage, or ARM, from PNC.
With an ARM, you’ll start out with a low rate and after a few years, your rate will reset with a new rate that can be either higher or lower depending on market conditions at the time the adjustment occurs. After the first rate adjustment, your interest rate can change on a regular basis until you pay off your mortgage.
Yes, adjustable rate mortgages have three rate caps that restrict how much your interest rate can change. One cap restricts the amount the interest rate can change at the first adjustment, the second restricts the amount the interest rate can change every adjustment period after the first adjustment period, and the third cap restricts the maximum interest rate you can pay for as long as you have the mortgage.
Notice Regarding Adjustable Rate Mortagages: Interest is fixed for a set period of time, and adjusts periodically thereafter. At the end of the fixed rate period, the interest and monthly payments may increase.
If you’re looking to refinance a loan over $548,250, you’ll most likely need a special type of mortgage. With a jumbo loan from PNC, you can finance up to $5 million.
These government-backed loans allow qualified buyers to refinance a home with more flexible credit requirements.
If you’re Active Military, a Veteran, Reservist or National Guard member, you may be eligible for a VA Home loan from PNC.
If You Are Self-Employed:
With a Fixed Rate Mortgage, the rate and payment will remain the same throughout the life of the loan. If you want to change the terms of your loan, you will have to refinance.
With an Adjustable Rate Mortgage, you’ll start out with a low rate and after a few years, your rate will reset with a new rate that can be either higher or lower depending on market conditions at the time the adjustment occurs. After the first rate adjustment, your interest rate can change each year until you pay off your mortgage.
Your rate is calculated based on a variety of factors, including credit qualifications, loan-to-value, loan amount and other criteria. For an Adjustable Rate Mortgages an index is reviewed on a specific date to determine a rate. A margin is then added to the index rate, and the result is rounded to determine the new interest rate for your loan.
There are few factors that determine how much you will be qualified to borrow: credit history, Debt-to-Income Ratio and Loan-to-Value/ down payment.
Specific credit requirements vary based on a range of criteria including loan-to-value, debt-to-income ratios, previous credit history, and assets used to qualify for the loan, but in general successful applicants will have average or better credit.
Specific debt-to-income requirements vary based on a range of criteria including loan-to-value ratio, assets used to qualify for the loan and credit history but typically a successful applicant will have a total debt-to-income ratio (including the proposed loan payment)below 43% of monthly gross income.*
*Percentages for certain programs vary.
Loan-to-Value Ratio /
Adjustable rate mortgages can be used to refinance a
If you’re eligible for an FHA Streamline Refinance, there is no loan-to-value maximum and an appraisal may not be necessary.
Jumbo mortgages can be used to refinance a home up to 80% of the home value. Ranges and eligibility may vary based on loan details, consult a Mortgage Loan Officer for additional information.
Loan amounts may vary based on product and property location $548,250 is the current conventional loan limit.
Refinancing at a longer repayment term may lower your mortgage payment, but may also increase the total interest paid over the life of the loan. Refinancing at a shorter repayment term may increase your mortgage payment, but may lower the total interest paid over the life of the loan. Contact us to discuss the option that best meets your needs.
PNC is a registered service mark of The PNC Financial Services Group, Inc. (“PNC”). All loans are provided by PNC Bank, National Association, a subsidiary of PNC, and are subject to credit approval and property appraisal.
A mortgage refinance inquiry is not an application for credit
Carrier fees for data usage may apply.
Loan amounts may vary based on product and property location. $484,350 is the current conventional loan limit.
For Adjustable Rate Mortgages loans ("ARMs"), rates may increase after settlement.
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