If you’re thinking about borrowing money using your home as collateral, you have several options.


Which lending option is right for you depends on a number of factors, such as how much equity you have, how long you plan to stay in your home and how much money you want to take out. Before you decide, you should understand the basics. 


Know the key differences.

When you refinance, you are replacing your current mortgage with a new loan to lower your monthly payments, get cash out to make a purchase, pay off debt or achieve other financial goals. With this option, you will have one monthly payment.


You may find your current first mortgage rate is better than the current refinance rate available and you want to keep what you have. Now may be the time to look at a 2nd mortgage, also known as a home equity loan or line of credit.


A home equity loan and home equity line of credit are two different kinds of loans that are separate from your first mortgage and require a separate monthly payment. You borrow against the equity built up as a result of paying your mortgage, so the more you’ve paid down, the more you can borrow.


Weigh the pros and cons.

There are benefits and costs associated with each option. Typically, with a traditional refinance , you’ll have:

  • Lower interest rates, but higher closing costs
  • Lower payments
  • Longer minimum loan terms
  • More fixed-rate options


With a PNC Rapid Refinance, you'll have:

  • Lower costs than a traditional refinance
  • Competitive fixed rates
  • Loan terms up to 30 years


And with a home equity loan or line of credit, you can expect:

  • Lower closing costs, but higher interest rates
  • The ability to borrow  up to 89.99% of your home’s market value with no PMI required
  • With a line of credit, easy access to funds with a Visa® Choice Access Card

Can’t decide? Let us help.

If you’re unsure which option is right for your needs, contact a PNC Mortgage loan officer to help guide your decision. A careful review of your financial goals and situation can help determine the best options for your needs.