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Combination Loan Refinance
Refinance up to 90% of your home's value with no PMI.
Overview
With the PNC Mortgage Combination Loan, you can refinance your first mortgage for 80% of your home’s value, and receive a home equity line of credit for 9.9% of the value.
Facts & Figures
Refinance your home up to 89.9% of your home’s value with a first and second mortgage. With the PNC Mortgage Combination Loan you can refinance your first mortgage for 80% of your home’s value, and obtain a home equity line of credit for 9.9% of the value.
- Potentially lower your monthly payment by eliminating private mortgage insurance (PMI).
- Interest on both loans may be tax-deductible. Consult a tax advisor.
Cost & Fees
Typically these fees range from 3% to 5% of the loan amount.
Combination Loan FAQs
Top customer questions about adjustable rate mortgages.
Fixed rate mortgages have a locked interest rate that will remain the same for the life of the loan. The interest rate on an Adjustable Rate Mortgage will change on an annual basis after the predetermined initial interest rate period expires.
With a Fixed Rate Mortgage, the rate and principal and interest payment will remain the same throughout the life of the loan. If you want to change the terms of your loan, you will have to refinance.
There are few factors that determine how much you will be qualified to borrow: credit history, debt-to-income ratio, loan-to-value ration, and your down payment.
- Credit History: Specific credit requirements vary based on a range of criteria including loan-to-value, debt-to-income ratios, previous credit history, and assets used to qualify for the loan, but in general successful applicants will have average or better credit.
- Debt-to-Income Ratio: Specific debt-to-income requirements vary based on a range of criteria including loan-to-value ratio, assets used to qualify for the loan and credit history but typically a successful applicant will have a total debt-to-income ratio (including the proposed loan payment)below 43% of monthly gross income.
- Loan-to-Value Ratio / Down Payment: Adjustable rate mortgages can be used to buy a home with as little as 5% down when private mortgage insurance (PMI) is purchased.
Your rate is calculated based on a variety of factors, including credit qualifications, loan-to-value, loan amount and other criteria.
An Abbreviated Refinancing Process Guide
Understand the basics before you start the refinancing process.
Credit Score Basics
When you buy or refinance, your credit score is one of the first things a lender looks at. It helps them determine if you qualify for a loan, and what interest rate they can offer you.
Factors that may affect your Credit Score:
- Length of Credit History
- Amounts Owed
- Payment History
- New Credit
- Types of Credit Used
- Derogatory Credit
Your credit score reflects how reliable you are as a borrower and is determined by your track record of borrowing and repaying banks, credit card companies and other lenders.
Factors that Determine Your Rate
Lenders start with the par rate, then look at your risk profile to determine what rate they will offer you.
Rates are usually based on a combination of the following factors:
- Down Payment
- Loan terms
- Loan to Value Ratio (The percentage of the lesser of the sales price/appraised property value that is borrowed from a bank or lender. A down payment of 20% would create a loan-to-value of 80%).
- Points
- Loan Product
Escrow Basics
Escrow Payment– That portion of a mortgagor's monthly payments held by a lender or servicer in an account to pay taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also called impounds or reserves in some states.
An Escrow Account on your loan allows PNC to make payments for certain bills related to your property, such as real estate property taxes, homeowners insurance, flood and other property related insurance, and mortgage insurance. Home buyers are generally required to have an escrow account until a certain loan to value ratio is met.
Escrow Analysis– The periodic examination of escrow accounts to determine if current monthly deposits will provide sufficient funds to pay taxes, insurance, and other bills when due.
Your annual Escrow Analysis Statement contains all the information you need to understand your previous and projected mortgage payments.
Refinancing Demystified
Learn more about refinancing and how to find out if the process could be worth it for you.
Looking to refinance? See options to lower your interest rate, payment, change terms, consolidate debt/get cash out, or take advantage of specialized loan products and programs.
Which lending option is right for you depends on a number of factors, such as how much equity you have, how long you plan to stay in your home and if you want to receive money back. Before you decide, you should understand the basics.
To apply for a refinance, you’ll need to provide information about your income, assets and debts, plus any special circumstances that may impact your ability to repay.
In addition, the lender will arrange for an appraisal of your home, flood determination, a title search and title insurance. They may also set up an escrow account to pay for necessary insurance and property taxes.
Refinancing Application Checklist
Use this list to gather the documents you’ll need to refinance.
To apply for a refinance, you’ll need to provide information about your income, assets and debts, plus any special circumstances that may impact your ability to repay.
In addition, the lender will arrange for an appraisal of your home, flood determination, a title search and title insurance. They may also set up an escrow account to pay for necessary insurance and property taxes.
Be prepared to provide some or all of the items below:
INCOME VERIFICATION
- Pay stubs for the last 30 days
- W-2 forms for the last two years
- Child support/alimony - Child support agreement and/or divorce decree and/or 12 months
- Award letter/1099 for social security, pension and disability
If you are self-employed
- Signed, completed tax returns for the past two years, including personal, partnership, and corporate, if applicable, including all schedules.
- Year-to-date business profit and loss statement for current year, if more than three months have passed since the end of the tax year
- Current balance sheet
PROPERTY INFORMATION
- Most recent property tax bill
- Current homeowner’s insurance policy, and flood any other property related insurance, such as flood insurance, if applicable
ASSETS
- Original bank statements for the last three months, including savings, checking, investment accounts, and retirement accounts
- Stocks and securities account statements for the last three months
PAYMENT HISTORY
- Child support/alimony
- Bankruptcy/Consumer Credit, if applicable
ADDITIONAL INFORMATION, IF APPLICABLE
- Explanation of discrepancies on credit
Payment Methods |
Main Details |
How Does It Work? |
|---|---|---|
| PNC Online Banking | Pay your mortgage online using PNC Online Banking. It's free, secure and easy to use. | You can schedule payments from a PNC deposit account or from an external non-PNC deposit account. Click Make a Payment on your account activity screen in Online Banking. |
| Automated Payments | Enroll in the Automated Payment Program and have your monthly payment automatically deducted from any deposit account, including deposit accounts at other banks. | Download, complete, and return the Automated Payment Authorization form to the address or fax number listed on the form, or to your local PNC branch. |
| Pay by Phone | Pay your Mortgage by phone from any account, including accounts at other banks. | Call PNC Mortgage to make a payment. |
| Mail Your Payment | Paying by mail | You’ll need to write your loan number on the appropriate documents and mail them. |
| In-Branch Payment | Paying in branch | Payment is accepted in many PNC bank branches during normal branch hours and is effective as of the date payment is made, although it may take up to 2 business days for the payment to be reflected on your account. |
| Bi-Weekly Automated Payments | Helps you pay off your loan faster and reduce the total interest you will pay on your mortgage. | A draft in the amount of half of your monthly payment is made every 2 weeks and held in escrow. A payment is applied after there are sufficient funds to make a complete payment, resulting in 13 payments being made in a year. |
Need More Information?
From first mortgage to home equity, from setting up your online account to payment processing – explore the Understanding Home Lending Center to find the answers you need.
We Are a Trusted Partner
You can feel confident choosing us as your financial partner for this important milestone in your life.
Whether you want to review your refinancing options or need help after the close, we’re available online, on the phone or face-to-face in your neighborhood branch.
Recommended Resources
Have Questions?
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For Adjustable Rate Mortgages loans ("ARMs"), rates may increase after settlement.
Refinancing at a longer repayment term may lower your mortgage payment, but may also increase the total interest paid over the life of the loan. Refinancing at a shorter repayment term may increase your mortgage payment, but may lower the total interest paid over the life of the loan. Contact us to discuss the option that best meets your needs.
PNC, PNC HomeHQ, PNC Home Insight and Home Insight are registered service marks of The PNC Financial Services Group, Inc. ("PNC"). PNC has a pending patent application directed at various features and functions of Home Insight® Planner. All loans are provided by PNC Bank, National Association, a subsidiary of PNC, and are subject to credit approval and property appraisal. This information is provided for business and professional use only and is not to be provided to a consumer or the public. This information is provided to assist real estate professionals and is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. Programs, interest rates and fees are subject to change without notice.
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