PNC Bank HELOC rates and discounts

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. Offered 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.

PNC Bank posts a sample HELOC rate on its website. The lender offers a variable rate, which can go up or down with market forces, and a fixed rate, which remains stable and can keep payments predictable. On the day we checked, the variable rate was 9.82%. A rate discount is available for borrowers who elect to make automatic payments from a PNC checking account.

Applying for a PNC Bank HELOC

Borrowers can apply online, in person at a PNC Bank branch or by phone. On the day we called, it took less than a minute to reach an advisor familiar with the HELOC process. The lender does not offer a live chat or chatbot on its website. To apply for a HELOC, you’ll need to supply:

• Some personal information.

• Credit history.

• Financial and tax details about your home.

Closing and managing a PNC Bank HELOC

No matter how you apply for a HELOC, you’ll close the line of credit in person at a PNC Bank branch. Branches are not available in every state. The line of credit can close seven to 10 days after approval, the lender says. The HELOC offers a 10-year draw period with a 30-year repayment period in most states. Borrowers can access funds in various ways, including checks, a Visa-backed card and through online banking. Payment can be made by mail, online, through autopay and by bank transfer.

Alternatives to a PNC Bank HELOC

Bank of America offers a HELOC up to $1 million with no annual fees or closing costs, and U.S. Bank offers a HELOC with a rate discount for current customers.

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. PNC Bank does not offer a home equity loan, but cash-out refinancing is available.