Home Equity Loans
With a home equity loan, you receive your funds in a single lump sum, then repay them at a fixed rate with predictable monthly payments for the term you choose. It is a good fit for a one-time need with a known cost, like a home improvement project or consolidating higher-rate debt. First Commonwealth home equity loans range from $10,000 to $500,000 with terms of 5 to 20 years, an autopay rate discount, and financing up to 89% loan-to-value. For today's numbers, see current rates.
Common uses of a Home Equity Loan
Every situation is unique, but here’s how we typically see customers use a home equity loan:
Add value to your home by switching from outdated to updated.
Rates are often much lower than on credit cards and personal loans. See how you can use home equity to consolidate credit card debt.
A home equity loan rate may be lower than your original mortgage rate.
Home equity loan or line of credit?
A home equity loan gives you a fixed lump sum, ideal when you know the exact cost. A home equity line of credit (HELOC) lets you draw funds as you need them with a variable rate, better for ongoing or unpredictable expenses. Our guide on a home equity loan or line of credit compares them side by side.
How much can you borrow?
Your borrowing power is based on your home's value, what you still owe, and the loan-to-value limit (up to 89%). For example, if your home is worth $300,000 and you owe $180,000, you have $120,000 in equity, and a portion of that may be available to borrow. Building equity over time increases what you can access; our guide on how to build equity in your home explains how.
Applying for a Home Equity Loan
Apply on your smartphone, tablet, or laptop, call us at 844.711.2265 or contact a local office to schedule an appointment. Here’s what you’ll need to apply:
- Verification of income.
- Annual property tax amounts.
- Proof of adequate homeowners insurance coverage, and adequate flood insurance coverage, if applicable.
If you've been told that you have bad credit, check out this resource to learn more about steps to improve your score.
Getting Prepared with a Home Equity Loan Calculator
Check out our Payments Calculator to determine your approximate monthly payment.
Home Equity Line of Credit
Looking for the flexibility to draw from your loan to access cash as you need it? Check out our Home Equity Line of Credit.
FAQs
To help you learn more about home equity loans, we've answered some of the frequently asked questions below.
It’s a loan secured by your home as collateral. You borrow against the equity you’ve accumulated in your home as it has increased in value, and you’ve paid down your mortgage.
You get the loan funds in one lump sum and pay it back in fixed monthly installments over a set term, just like your original mortgage.
Rates vary from bank to bank. We offer fixed annual percentage rates as low as 5.99% APR for 5 years, 6.05% APR for 10 years or 6.30% APR 15 years with our current promo.¹ Call us at 1-844-711-2265 (BANK) to learn more.
Lenders typically allow you to borrow up to 89% of your home’s value minus what you still owe on any outstanding mortgages. You’ll need a low debt-to-income ratio, stable income, good employment history, and a good credit score to qualify for the best rates and terms. Every lender is different so it’s best to talk to us about your situation.
Tapping your home equity to consolidate high-interest rate debt such as credit cards or personal loans, make value-adding improvements to your home, or make a large purchase often makes financial sense. You’re putting your home at risk if you default, so make sure you can afford the payments by crunching the numbers carefully.
A home equity loan is a one-time lump sum at a fixed rate. A HELOC is a revolving line you draw from as needed at a variable rate. Choose the loan for a known cost and the line for ongoing needs.
Up to 89% of your home's value minus what you owe, subject to credit approval. The more equity you have, the more you may be able to borrow.
Common uses are home improvements, debt consolidation, and large planned expenses. Because your home is the collateral, borrow with a clear repayment plan.
It may be when funds are used to buy, build, or substantially improve your home, but rules vary. Please consult a tax advisor about your situation.
Timing depends on the appraisal and verification steps.
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1 Offer is based upon first and second lien loans of $25,000 to $750,000, a loan to value up to 89% on an owner-occupied primary residence, subject to credit approval, and cannot be a purchase money mortgage. A minimum of $25,000 in new money and a direct debit of loan payment from a First Commonwealth Bank consumer checking account are required for Processing and Third Party fees, ranging from $279 to $1,055, to be paid by Lender. Flood insurance is required where necessary on collateral property. If a deed transfer is necessary, title insurance and attorney’s fees may be required. Typical loan payment examples are as follows: if you borrow $25,000 secured by an owner-occupied home for 60 months at 5.99% APR, the monthly payment would be $483.20; or if you borrow $25,000 secured by an owner-occupied home for 240 months at 6.55% APR, the monthly payment would be $187.13. Taxes and property insurance on collateral property are required, and the actual payment obligation will be greater. Consult your tax advisor about the deductibility of interest. Offer valid for applications October 1, 2026 through November 30, 2026. Offer subject to change or withdrawal at any time.
2 Property must be located in a low to moderate-income census tract area as determined by the current year FFIEC map.