If you’re looking to borrow a large sum of money and have equity in your home, check out this loan. With stable features, you will comfortably be able to budget and repay this loan on your terms.
Key Features and Benefits
- Payment Stability: Fixed monthly payments over the life of the loan
- Flexibility: Flexible repayment terms available
- Access to Funds: Receive funds upfront in one lump sum
- Fees and Costs: No application fee and minimal costs at closing
- Tax Benefits: The interest you pay on your home equity is typically tax deductible1
- Savings: 0.25% interest rate discount when automatic payments are set up with a PNC account
Home Equity Loan FAQ
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?
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?
Your 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 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 and close your account within 36 months of loan closing. For applications submitted on or after December 8, 2013, there is no Early Account Closure Fee assessed 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 account opening. If the loan is paid off 36 months after closing, repayment of these costs will not be 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—if you change your mind, 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, got the people and passion to help you close the deal and achieve your home finance goals. You’ll want a partner like us.
- We're experienced: We've been at this for a long time; more than 150 years.
- 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.
Home Equity Loan Closing Costs
- No application fee
- Minimal costs at closing
Recording and Satisfaction Fees (amounts vary by geography)
Insurance: you are required to carry property insurance on the property that secures your account. Flood insurance may be required. Title Insurance may be required for loans of $500,000 or more and for loans of lesser amounts depending on a number of factors, including the manner in which the property was acquired. Payments on this account do not include taxes or insurance
Property Search Fee: $12 - $250 (KY, IN, NJ, OH, WI, MO, GA, NC, SC and AL only)
$10 GA Residential Mortgage Act Fee, applicable in GA only
Appraisal fee not required in most circumstances
Home Equity Loan Servicing Fees
- Late Charge - The greater of $40 or 10% of the total amount of the payment
- Return Payment Fee - $30
1. Consult a tax advisor