![]() In Tennessee, Massachusetts, Minnesota, Kansas and Connecticut, you can borrow up to 85% of your home’s value. Additionally, the terms vary from state to state. PNC Bank only offers HELOC services in 44 states. Cons explained Not available in all states A line of credit allows you to borrow a little at a time, so you only pay interest on what you’ve spent. When you take out a home equity loan, you receive the entire lump sum upfront. This is where a line of credit differs from a home equity loan. ![]() Some banks have a minimum draw amount, but PNC allows you to borrow anywhere from $1 all the way up to your credit limit. PNC doesn’t require you to draw a specific amount each time you need money. Every time you use money from your line of credit, it's considered a draw. With a PNC CHELOC, the draw period is 10 years. No minimum draw amountĪ HELOC draw period is the time period during which you can borrow money from your credit line. The benefit is available after the introductory period and is forfeited if you cancel automatic payments. If you have a PNC checking account and automate your payments, you receive a 0.25% rate discount on your home equity line of credit. 0.25% rate discount available with autopay on a PNC checking account If you opt for a fixed rate at the time you open the line of credit, PNC will initially waive the fee. This happens if you change your interest rate from variable to fixed more than once during the life of your loan. The terms range from five to 30 years for fixed-rate loans in most states, and there is a $100 transfer fee every time you unlock or establish a fixed rate.īecause you may take out the money on different occasions throughout the life of the loan, you could have different interest rates for different portions of your loan with PNC Bank. This allows you to watch the market and lock in your rate for a portion of your loan.Įvery time you use your line of credit, it’s considered a draw on your account. One of the pros of choosing a line of credit through PNC is that you can transfer any portion of your variable-rate balance to a fixed interest rate, as long as the amount is $5,000 or more. If rates are high when you take out a HELOC, your monthly payment can increase significantly. Unfortunately, you are at the mercy of the economy when it comes to interest rates. Pros explained Borrowers can switch between variable and fixed rates Only offers HELOCs, not home equity loans.
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