PNC: 2020 Home Equity Review

PNC Bank logo

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for

Which bank should I choose?

Get personalized bank recommendations in 3 easy steps.

PNC Financial Services Group has been in business for more than 160 years and provides various banking and lending services in 37 states and Washington, D.C. 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 (HELOC) and a home equity rapid refinance. Each comes with flexible borrowing options, low costs and competitive interest rates. Offerings and rates vary by state; details presented here are based on the 10019 ZIP code.

PNC snapshot

Loan types offered Home equity loan, HELOC
APR range Home equity loan: Starting at 3.39%
HELOC: Starting at 4%
Loan amount range Home equity loan: Starting at $1,000
HELOC: Starting at $10,000
Minimum credit score required Not specified
Repayment terms Home equity loan: Up to 30 years
HELOC: 7- or 10-year draw period and 30-year repayment period
Average time to approval Not specified

Benefits

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. Here are some of its best features:

  • Competitive interest rates: Interest rates can vary based on which product you choose and where you live, but in general, they’re competitive with those of 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: PNC doesn’t advertise a limit to how much you can borrow other than the LTV limit, which is 84.9 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.

Drawbacks

PNC may not be a good fit for everyone. Here are some of its drawbacks:

  • 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 your minimum APR might be.

Types of fees charged

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.

Additionally, you may be on the hook for one-time servicing fees, such as $40 late fee, a $30 returned payment fee or a $30 overlimit fee.

Loan products offered

PNC offers several mortgage and mortgage refinancing products, as well as three home equity products: a home equity loan, a HELOC and a home equity rapid refinance.

You can get a home equity product on any of the following properties:

  • Single-family primary residence.
  • Vacation home.
  • Multi-family home (up to two families).
  • Condominium.
  • Townhome.

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.

HELOC

With a PNC HELOC you can borrow between $10,000 and the maximum you qualify for based on your LTV.

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.

How to qualify for a home equity loan with PNC

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 and to check which products are available to you.

View home equity rates

Tap into the value you have in your home to get the funds you need.

How to get started

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. Representatives are available on weekdays from 7 a.m. to 10 p.m. ET and on the weekend from 8 a.m. to 5 p.m. ET.

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.

How Bankrate rates PNC

Overall Score 4.5
Availability 3.6
Affordability 4.8
Customer Experience 5.0

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.