PNC Home Equity Review: Rates, Features and How It Compares
Written by
Sarah Sharkey
Edited by
Emily Gadd
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
PNC offers home equity lines of credit (HELOCs). Homeowners can opt for either a variable rate and payment or a fixed-rate and payment through PNC’s HELOC options. Throughout your HELOC’s draw period, you have the option to lock and unlock the interest rate on qualifying balances.
In this guide, we’ll cover what PNC offers, how its rates and fees stack up, who qualifies and how it compares to other lenders.
Is PNC the Right Fit for You?
Ideal for:
- Homeowners seeking low introductory rates on a HELOC.
- PNC Bank customers who regularly use their checking account.
- Homeowners who like the ability to convert debt from variable-rate to fixed-rate.
Not ideal for:
- Homeowners who don’t want to face an annual fee or origination fee.
- Not available to homeowners in Alaska, Hawaii, Louisiana, Mississippi, Nevada, and South Dakota.
Pros and Cons of PNC Home Equity Products
| Pros | Cons |
|---|---|
| Low introductory rate | Annual fee |
| Fixed rate and variable rate options | Origination fee in some states |
In most states, homeowners aren’t required to take a minimum amount of money, or draw, out. But in Texas, a minimum draw of $4,000 is required.
What Types of Home Equity Products Does PNC Offer?
PNC offers home equity lines of credit (HELOCs). Below is a look at the details of their HELOC product:
| Interest Rate | – 0.25% introductory rate for the first six months – 6.49% to 14.60% variable APR |
| Closing Costs | Varies |
| Maximum Loan Amount | $1 million |
| Origination fee | – $0 in some states – $199 to $499 in other states |
| Annual Fee | $50 |
| Terms | Draw period of 5 to 30 years |
| Borrowing options | Up to 89.9% of your home equity |
What Rates and Discounts Can You Get?
- Typical APR Range: 6.49% to 14.60% variable APR
- Intro Offer: 0.25% introductory rate for the first six months
- Rate Discounts: 0.25% off for automatic payments from a qualifying PNC checking account
PNC also offers an interesting opportunity to switch between fixed and variable rates.
After you withdraw funds, you can transfer a portion of that debt into a locked-in fixed-rate loan. If you notice interest rates fall, you can switch back to a variable rate. But each time to go from fixed to variable or variable to fixed, you’ll face a fee.
Are There Fees or Closing Costs?
- No application
- Annual fee: $50
- Limited closing costs: PNC pays for many closing costs, including valuation fees, property search fees, recording fees, and more.
- Early closure fee: If you close the account within 36 months of opening, you must repay any closing costs covered by PNC.
Who Qualifies for a Home Equity Product?
If you want to lean on your home equity through PNC, you’ll need to meet the following requirements:
- Credit score: You’ll likely need a credit score of at least 620.
- Equity: Generally, you’ll need at least 15% to 20% equity in your home to pursue a HELOC.
- Income: Borrowers must have enough income to cover the new monthly payment.
- Debt-to-income (DTI): While PNC doesn’t list a particular DTI requirement, borrowers with a DTI less than 43% are generally more likely to be approved for a loan.
What’s the Application Process Like?
- How to apply: Online or over the phone
- Funding time: It can take up to 10 days to receive your funds after closing.
- Documents needed: Proof of income, property tax info, mortgage statement, employment details, and more.
How Does PNC Compare to Other Lenders?
| Starting APR | Closing Costs | Maximum Loan Amount | |
|---|---|---|---|
| PNC | As low as 6.49% APR; variable | Varies | $1 million |
| U.S. Bank | As low as 7.65%; fixed | $0 | $750,000 (Up to $1 million in CA) |
| Navy Federal Credit Union | As low as 7.750%; variable | $0 | $500,000 |
| Four Leaf Federal Credit Union | As low as 7.50%; variable  |
$0 | $500,000 |
| Fifth Third Bank | As low as 7.50%; variable  |
$0 | $500,000 |
Final Verdict: Should You Choose PNC?
PNC offers an attractive HELOC option. But it’s not the right fit for everyone. Generally, a HELOC through PNC makes the most sense for existing customers who can tap into a rate discount and live in a state without hefty origination fees.
But for homeowners who live in a state where PNC charges large origination fees or doesn’t service at all, looking elsewhere for a HELOC is a good idea.
Key Takeaways
- PNC offers HELOCs with competitive rates to homeowners in many states.
- Most users will qualify if they have 15%+ home equity and a solid income.
- Best for: Existing customers with a qualifying checking account and good credit.
FAQ
- Does PNC offer fixed-rate HELOCs?
- Although PNC offers HELOCs with variable rates, borrowers have the option to convert to a fixed rate along the way.
- What happens if I pay off my loan early?
- If you close your line of credit within the first 36 months, you'll need to reimburse PNC for any closing costs they covered. But if you pay down your line of credit to $0 and leave it open, you won't face this fee.
- Is the interest tax-deductible?
- In some situations, the interest from your HELOC is tax-deductible. If you use the funds from a home equity loan to buy, build, or substantially improve your home, the interest might be tax-deductible. But if you use the funds for any other reason, the interest isn't tax-deductible.
- Do I need to be a customer to apply?
- No. You don't need to be an existing PNC customer to apply for a HELOC.
