PNC offers several home improvement financing options including an Unsecured Installment Loan (UIL), Home Equity Line of Credit (HELOC) and a Cash-Out Mortgage Refinance Loan. A UIL has no collateral requirement but does come with a lower maximum loan amount (up to 35K). HELOCs and Cash-Out Refinance Loans require that you use your home as collateral to secure the loan, while offering significantly higher maximum loan amounts (up to $1M and $5M respectively). One of the primary differences between a HELOC and Cash-Out Mortgage Refinance Loan is how the funds are disbursed. A HELOC provides you with the option of taking an initial draw at closing, while providing ongoing access to funds throughout the 10-year draw period (up to your approved credit limit). A Cash-Out Mortgage Refinance Loan will issue the full amount of approved funds at closing in a one-time lump sum payment. For a more detailed and thorough comparison, see our Lending Product Comparison Table.

Unsecured Installment Loans typically offer faster decision-making and funding timelines. After you apply, you’ll get a decision within a few days. If approved, you can go to a branch to sign your loan documents and immediately receive your funds. While HELOCs and Cash-Out Mortgage Refinance Loans tend to take longer to fund.

Yes, you can use PNC’s Home Renovation Calculator to estimate monthly payments and compare funding options before you apply. You can also use our Refinance Cost Calculator to get an estimate for how much it may cost to refinance your existing mortgage, with average costs typically ranging between 3%-6% of your loan amount. Eligible clients may be able to roll these closing costs into the new refinanced mortgage loan amount and pay nothing out-of-pocket at closing.

Home improvement loans can be used to finance both minor home repairs and major home renovations projects, with no restrictions on the use of funds. Tackle projects like a kitchen remodel, roof replacement, building a new garage or replacing your windows. Improvements like these can help enhance your current living situation, while also having a positive impact on the overall value of your home. For HELOCs and Cash-Out Mortgage Refinance Loans, using these funds for making home repairs or improvements may offer certain tax benefits (consult a tax professional for details).

It is important to consider the different origination fees and prepayment penalties that may come with the different types of home improvement loan PNC offers:

• UIL's have no origination or application fees and come with no prepayment penalties for paying off the loan early.
• Some HELOC’s may come with origination fees up to $499 (which vary by state and line amount), along with a $50 annual fee assessed annually during the draw period. HELOC’s also have a prepayment penalty, so if you close the account within the first 36 months after opening, you will be responsible for paying back any of the reimbursable fees that were paid by PNC (see PNC CHELOC fees section for more info).
• Cash-Out Refinance loans are the higher fee loan option as they come with closing cost fees. These fees can average between 3%-6% of the loan amount. However, eligible clients may be able to roll these closing costs into the new refinanced mortgage loan amount and pay nothing out-of-pocket at closing.

A HELOC and a Cash-Out Refinance loan may offer tax advantages if the funds are used to make substantial home improvements or qualified energy efficiency upgrades to your home. Consult a tax advisor for eligibility. You can view more information with the energy efficient home improvement tax credit details.

Before choosing a loan type, you may want to start by preparing a project budget and/or cost estimate to help determine how much funds you may need. You can use our Home Renovation Cost Estimator Calculator to get started.

Once you have an estimate, you may want to compare the different product options based on your borrowing needs, speed of funding, estimated costs, and whether you want to use your home as collateral. For client interested in learning more about our CHELOC or Cash-Out Refinance products, you can connect with one of our Home Lending Professionals today by calling 1-844-575-0613. For clients interested in learning more about our Unsecured Installment Loan, you can connect with one of our Loan Specialist today by calling 1-877-225-5762. You can also use PNC’s comparison table to help select the right loan for your project.