PNC Financial Services Group has been in business for more than 160 years and provides various banking and lending services in 37 states and the District of Columbia. Headquartered in Pittsburgh, Pennsylvania, the bank operates primarily in the Mid-Atlantic, Midwest and Southeast.
PNC offers three home equity products: a home equity loan, a home equity line of credit, or HELOC, and a home equity rapid refinance. Each comes with flexible borrowing options, low costs and competitive interest rates.
If you’re considering using PNC to borrow from your home’s equity, here are a few lender highlights to consider before you submit an application:
- Minimum loan amounts include $1,000 for a home equity loan and $10,000 for a HELOC. There is no limit to how much you can borrow besides the maximum amount you qualify for based on your LTV.
- You can borrow up to a loan-to-value ratio (LTV) of 89.9 percent with the home equity loan or HELOC, though that limit may be lower in some areas.
- The lender has few closing costs, and the ones it charges are affordable.
- There is no prepayment penalty, but you may need to repay lender-paid closing costs if you close your account early.
- PNC doesn’t disclose its minimum credit score, so you’ll need to apply to find out whether you qualify.
Pros and cons
To find out whether PNC is a good fit for your home equity needs, it’s important to know both the benefits and drawbacks of what the lender has to offer:
- Competitive interest rates: Interest rates can vary based on which product you choose and where you live. But based on the rates we reviewed, they’re competitive with other home equity lenders. Also, PNC offers a 0.25 percent interest rate discount if you set up automatic payments to any home equity product from a PNC checking account.
- Flexible borrowing options: There’s no limit to how much you can borrow other than the LTV limit, which is 89.9 percent. Also, you can borrow as little as $1,000 with a home equity loan, which can make it an excellent alternative to a personal loan.
- Light on fees: The lender charges only a few closing fees, and there’s no prepayment penalty. There is, however, a $50 annual fee on the HELOC, and you may need to reimburse lender-paid closing costs if you close your account within three years.
- No transparency on credit score requirements: Many home equity lenders are upfront about what credit score you need to get approved. But with PNC, you need to apply to find out. If your credit isn’t perfect, it may be more convenient to work with a lender that can give you a minimum standard you need to meet.
- Terms can vary based on where you live: PNC operates in 37 states, but you need to enter your zip code to find out if the lender offers home equity products in your area, and what the APR and your maximum LTV might be.
You can get a home equity product on any of the following properties:
- Single-family primary residence
- Vacation home
- Multi-family homes (up to two families)
Home equity loan
With a home equity loan, you can borrow as little as $1,000 up to the maximum LTV you qualify for. You can repay that debt over up to 30 years. Interest rates are fixed and based on where you live and other factors.
With a PNC HELOC you can borrow between $10,000 and the maximum you qualify for based on your LTV.
The lender’s HELOC offers a variable interest rate with the option to lock in a fixed rate.
Repayment terms include:
- A principal and interest HELOC, where you get a 10-year draw period followed by a 30-year repayment period.
- An interest-only HELOC, where you get a 7-year draw period followed by a 30-year repayment period
- You can also lock in a fixed rate on some or all of your balance during your draw period and pay it over five to 30 years.
Home equity rapid refinance
With a home equity rapid refinance, you can gain access to some of the equity in your home without needing to do a cash-out refinance. You can borrow up to an LTV of 84.9 percent, and get the cash you need with lower closing costs, shorter repayment terms and no private mortgage insurance.
The home equity rapid refinance product allows you to repay your debt over up to 30 years.
Interest rates vary based on which product you choose and where you live. You can check rates on PNC’s website by choosing the type of home equity loan you want and your zip code. To give you an idea of what to expect, we entered a zip code in Alabama and got the following rates:
- Home equity loan: Fixed rates start at 3.44 percent APR.
- HELOC: Variable rates start as low as 4.70 percent APR. If you lock in a portion or all of your balance with a fixed rate and repayment term during your draw period, interest rates start as low as 4.83 percent APR.
- Home equity rapid refinance: Fixed interest rates start at 3.39 percent APR.
For all three home equity products, PNC requires that you have property insurance on your property, and you may be required to have flood insurance and title insurance. Depending on where you live, you may need to pay a property search fee of up to $250, and Georgia residents are required to pay a $10 GA Residential Mortgage Act Fee.
For the home equity rapid refinance loan, you’ll also pay recording and satisfaction fees, which can vary based on where you live.
There is no prepayment penalty on any home equity product. However, if you pay off your debt and close your account within 36 months, you may need to reimburse PNC for closing costs that the bank covered on your behalf. The HELOC has a $50 annual fee.
PNC doesn’t disclose any minimum credit score or maximum debt-to-income ratio requirements, so it’s tough to get an idea of whether you might get approved without applying. If you want to minimize time spent filling out applications, as well as credit inquiries, it may be better to consider a home equity lender that provides this information upfront.
Also, keep in mind that PNC doesn’t offer home equity products nationwide. You’ll need to enter your zip code into the website to find out if you live in an eligible area.
How to apply
If you’ve shopped around and are ready to apply with PNC, you can do so online, at a local PNC branch or by calling 877-535-6319.
You’ll start by choosing the product you want and entering your zip code to ensure that you live in an area where PNC operates. During the application process, which can take as little as 15 minutes, you’ll need to provide the following:
- Personal information, including your name, contact information, Social Security number, date of birth, income and employment status
- Property information, including your address, property type and estimated property value
- Desired loan amount
Once you submit your application, the lender will run a credit check. Note that you may also need to provide supporting documents to complete the application process, including tax returns, pay stubs, bank statements and more.
After your application has been approved, you’ll typically get your funds on the fourth business day after you sign the loan documents.
Before you apply for a home equity loan or line of credit through PNC, take some time to compare what it has to offer with other home equity lenders. That way, you can ensure you get the best deal available to you.
If PNC has the best offering, start the application process online, at a local branch or by calling the bank.
If you’re applying online and have any questions, call 877-535-6319 to speak with a loan specialist. Representatives are available Monday through Friday from 7:00 a.m. to 10:00 p.m. Eastern time, and on the weekend from 8:00 a.m. to 5:00 p.m. Eastern time.