Learn how to leverage your home, review these scenarios to see the potential impact of consolidating debt.

You can use your Home Equity to:

Consolidate Debt 

• If you are finding it hard to manage monthly payments for credit cards, student loans and auto loans, you may be able to consolidate your debt with a home equity line of credit and make one monthly payment.
• Use our debt consolidation calculator to get an idea of a rate and monthly payment.

Renovations

• Whether you are renovating to get more space, reduce energy costs, or to turn your house into your dream home, accessing your home equity can be a good option.
• Estimating the cost of your project is the first step. Get quotes from multiple contractors, and to be safe, add 20-30% to the total to account for potential overages.
• Estimate the cost of a home renovation with our tool.

Repairs or Maintenance

• Regular maintenance and minor repairs are a part of homeownership. But if your home needs more costly repairs, like a new roof or floors, using your home equity could be a smart choice.
• Estimating the cost of your project is the first step. Get quotes from multiple contractors, and to be safe, add 20-30% to the total to account for potential overages.

Finance a Purchase

• Whether planned or unplanned, large purchases or expenses can throw a wrench in your budget. You can access the equity in your home to finance things like a car, tuition or to pay for a wedding.
• Remember, the interest you’ll pay on a home equity line of credit will add to the overall cost of any purchase. Your interest rate and monthly payment may vary over the life of your loan product you choose to use, and if you can’t make a payment you may put your home at risk. So carefully consider if the expense is worth it.

Annual Fee

The $50 Annual Fee will be charged to your Account by the second Billing Cycle following account opening and each year thereafter, during the Draw Period.

Origination Fee

• The Choice HELOC has an origination fee. The Origination Fee is a one-time fee paid on your first monthly billing statement.

• The Origination Fee is currently being charged in California, North Carolina, and New York. The amounts:

Lock-in Fee

• There is a $100 charge to convert a balance from a variable rate into a fixed rate lock. There is a $100 charge to unlock a balance that is currently in a fixed rate lock.

• There is no charge to convert a balance from a variable rate to a fixed rate lock at the time of loan origination - meaning, when you sign the papers to finalize the loan. Any fixed rate lock or unlock after origination will trigger the $100 fee.

Late payment fee

If your monthly payment is submitted after the payment due date, you may be subject to a late payment fee.

Recordation Tax

Customers with collateral in New York and Georgia are responsible for paying all state specific city/county taxes. These taxes are a percentage of the Credit Limit approved by the lender and accepted by the customer. Your taxes for New York could range from $20.50-$21.75 per $1,000 of your credit limit within New York City or $7.50-$12.50 per $1,000 of your credit limit outside of New York City. Your taxes for Georgia are $3.00 per $1,000 of your credit limit. PNC Bank (Lender) will withdraw the total tax amount from your Credit Limit to pay the taxes on your behalf and set up a 0.00% interest segment for the full amount of the taxes paid on your account. You will then pay 1/36th of the total amount over 36 months as part of your minimum monthly payment due. This segment will reduce the Credit Limit by the amount of taxes paid. For example, based on a line amount of $100,000, then based on New York City tax, your estimated total tax would be between $2,050 and $2,175. Your estimated monthly tax segment payment, which is 1/36th of the total tax amount, would be between $56.94 and $60.42, respectively.

Reimbursable Fees

• PNC Bank pays for some items when you take out a Choice HELOC:
  
  • For CHELOCS with an application date of June 23 ,2023 and before: The valuation fee, property search fee, recording fee and county/state taxes, as applicable, are reimbursable to PNC on a prorated bases if the borrower pays off and closes the HELOC in less than 36 months from origination. Texas has no reimbursable fees.
  • For CHELOCS with an application date of June 24, 2023 and after: In addition to the valuation fee, property search fee, recording fee and county/state taxes, as applicable, the credit report and flood report fees are reimbursable. There are additional fees that may be incurred on some applications and will also be considered to be reimbursable in full.  Most common fees include, but are not limited to: extended property search, property condition report, instant income verification, notary or electronic close, attorney fees, settlement fees, etc.

• If you close the account within the first 36 months after opening, then you will be responsible to pay those fees back to PNC. Please note: paying the balance to $0.00 will not trigger those fees, only closing or cancelling the account or selling your home.

PNC and Non-PNC customers may borrow up to 89.9% of the fair market value of their home for 1st lien Choice HELOCs.

PNC customers may borrow up to 85% of the fair market value of their home for 2nd lien Choice HELOCs.

Non-PNC customers may borrow up to 80% of the fair market value of their home for 2nd lien Choice HELOCs.

• These collateral states can only go up to 85% loan to value of the home for 1st lien Choice HELOCs:

1. Connecticut
2. Kansas
3. Massachusetts*
4. Minnesota*
5. Tennessee
   

• These collateral states can only go up to 80% loan to value of the home for 1st and 2nd lien Choice HELOCs:

1. Arkansas
2. Colorado
3. Idaho
4. Iowa
5. Maine
6. Montana
7. North Dakota
8. Nebraska
9. New Hampshire
10. New Mexico*
11. Oklahoma
12. Oregon
13. Rhode Island
14. Texas
15. Utah
16. Vermont
17. Washington
18. Wyoming

• These collateral states can only go up to 80% loan to value of the home for 2nd lien Choice HELOCs:

1. Arizona
2. California
3. Florida
4. Massachusetts
5. Michigan
6. Minnesota
7. New York
   

* Please Note: New Mexico can go up to 85% in 2^nd lien; it can only go to 80% for first lien

Documentation, Credit History and Property Valuation Review
We’ll evaluate your credit history, verify your employment, verify your income, and review all supporting documentation submitted.

We’ll verify ownership and complete a valuation of the property being pledged as collateral by ordering an appraisal product from an independent service provider, who will always inspect and photograph the property’s exterior. In some cases, this independent service provider may call you to setup a time to inspect both the property’s interior and exterior.

A review of all information will enable us to determine that you meet the qualifications for the line or credit for which you applied.

Final Credit Decision
If your request for credit is approved, we will:

• Communicate the final approval or a counter-offer to you, detailing any closing stipulations. For example, updating the declaration page of the Homeowner’s Insurance Policy listing PNC Bank, NA as loss payee is required.
• We’ll then schedule a closing date and verify the amount(s) to be disbursed, if applicable, including the amount(s) of any required payoffs. If we are unable to approve your request for credit, you will receive a communication indicating the reasons for the decline.

Loan Closing and Disbursement of Funds
At closing we will require all applicants to provide two forms of identification; one must be a valid photo ID. After reviewing the terms and conditions of your line of credit, you will be asked to acknowledge and accept those terms and conditions by signing loan documents.

When using a primary residence as collateral, a three business day right to cancel (“rescission”) period is required by law to allow applicants the opportunity to cancel their home equity line of credit application.

Once your right to cancel period has expired, any funds requested at closing from your home equity line of credit will be issued on the following day.  It can take up to 10 days after your loan closing for your home equity line of credit to be available to access for additional disbursements