PNC Bank HELOC Review 2024
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Our Take
5.0
PNC stands out for being one of the largest HELOC lenders in the country by volume. PNC’s HELOC has a higher-than-average borrowing limit, a wide range of repayment terms and no initial draw requirements. Borrowers also have the option to fix the interest rate on some or all of their loan balance. However, there is an annual fee of $50.
Pros
- Max borrowing limit is higher than average.
- Minimum credit score requirement is lower than most competitors.
- Repayment period up to 30 years.
- Among the largest HELOC lenders by origination volume.
Cons
- Annual fee of $50.
- Borrowers in California, North Carolina and New York will pay an origination fee.
Lender | Max. loan amount | Max LTV | Min. credit score | |
|---|---|---|---|---|
$400,000 | 85% | 640 | Visit Lenderat Figure at Figure | |
$750,000 | 80% | 580 | Visit Lenderat New American Funding at New American Funding | |
$350,000 | 80% | 680 | Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC |
Full Review
PNC Bank HELOC rates
Most home equity line of credit, or HELOC, interest rates are indexed to a base rate called the prime rate. The annual percentage rate, or APR, that you’re offered will include a margin the lender has added to the prime rate. These margins depend largely on factors like your credit score, your existing debt and the amount you wish to borrow, but they will vary by lender.
Current prime rate | Prime rate last week | Prime rate in the past year — low | Prime rate in the past year — high |
|---|---|---|---|
7.75% | 8% | 7.75% | 8.50% |
PNC HELOC rates are customizable online based on factors such as your address and credit line amount. On the day we checked, advertised rate offers ranged from prime + 0.69% to prime + 8.6%. Customers who set up automatic payments from a PNC checking account may be eligible for a 0.25% interest rate discount.
Borrowers have the option to lock the interest rate on some or all of the loan balance, with repayment terms ranging from five to 30 years.
Applying for a PNC Bank HELOC
Borrowers can complete an application online, over the phone or in person at a branch location. In addition to phone and branch support, PNC also offers a live chat feature on its website. When we tried it out, we were immediately connected with a home lending representative who was able to answer our questions.
According to the lender, 78% of applications are approved within 30 days, and 75% of applications are funded within 50 days. PNC also reported that the average processing time was 18 days for HELOC approval and 42 days for funding.
Be prepared to provide personal information like your identification and social security number, as well as financial documentation such as bank statements, pay stubs, W-2s and mortgage documents.
Opening and using a PNC Bank HELOC
For borrowers with no other liens against their home, the maximum borrowing limit is 89.9% of the value of the home.
For existing PNC customers with remaining mortgage balances, the maximum borrowing limit is 85% of your home's value, minus the mortgage balance. For non-PNC customers, this limit is 80%.
Borrowers can draw from the line of credit for 10 years and have their choice of repayment terms ranging from five to 30 years. There is no initial draw requirement. You can access funds by check, debit card, or transfer from your HELOC account to a PNC checking or savings account.
PNC pays some third-party closing costs, unless you close the account within the first three years; in that case, you’ll be required to repay these fees.
Borrowers in California, North Carolina and New York will pay an origination fee of $199-$499, depending on the line’s credit limit.
All borrowers pay an annual fee of $50.
» MORE: Best HELOC lenders
Alternatives to a PNC Bank HELOC
Borrowers drawn to lenders with vast experience in HELOC lending may be interested in Truist.
Alternatively, borrowers who prioritize fast closing may be a fit for Figure.
HELOCs offer a flexible way to access home equity over a period of time and pay interest only on the funds you withdraw. However, rising interest rates can bump up your monthly payment, and, as with credit cards, it takes discipline to avoid overspending.
Alternatives to home equity lines of credit include a home equity loan, which offers a lump sum with a fixed rate, or a cash-out refinance, which replaces your existing mortgage with a larger loan.
Of these options, PNC offers cash-out refinancing.
NerdWallet’s HELOC star ratings are awarded by the editorial team based on the following evaluated factors: HELOC volume, combined loan-to-value ratio, whether a fixed-rate option is available, lender fees, initial draw requirements, flexibility of draw and repayment terms, digital application availability, customer support options and transparency to consumers on key factors. A recent regulatory action against a lender may affect its HELOC star rating.
