No Closing Costs or Processing Fees. Ever.
With our FlexChoice Home Equity Line of Credit, you don’t have to pay closings costs or processing fees2, which can typically range from $475 to $915. This means that you can be sure you’re getting the most out of your loan for your financial journey.
Common Uses of a Home Equity Line of Credit
Every situation is unique, but here’s how we typically see customers use a home equity line of credit:
- Consolidating Debt – because a home equity line of credit is secured by your home, rates are often much lower than credit cards and personal loans. Check out our debt consolidation calculator to run your numbers.
- Emergencies – unlike a home equity loan, with a home equity line of credit, you only make payments when you draw on your line. This makes a home equity line of credit a very helpful tool in case of emergencies. When the unexpected happens, you have confidence knowing that you can access money through your home equity line of credit.
- Home Improvements – use a home equity line of credit to take on home improvement projects that will add value to your home, like an updated bathroom or kitchen.
Home Equity Line of Credit Rates & Features
- No closing costs or processing fees2
- Available for credit lines from $10,000 to $500,000
- A fixed interest rate lock payment option allows you to convert a portion of your balance to a fixed interest rate for a term of 3 to 20 years
- Borrow up to 89% of your home equity as a first or second lien
- Access your funds by check, phone, online, or at a First Commonwealth office
- Set up automatic payments from your First Commonwealth checking account
Home equity line of credit rates vary depending on factors like your credit score, how much equity you have and how much you need to borrow. Right now, we have a special 5.99% APR for 6 months which adjusts to as low as 7.01% APR1.
Applying For A Home Equity Line of Credit
Apply for a home equity line of credit using your smartphone, tablet or laptop. We’re also available at 844.711.2265 to apply over the phone, or contact a local office to schedule an appointment. Here’s what you’ll need when you apply for your home equity line of credit:
- Verification of income
- Annual property tax amounts
- Proof of adequate homeowners insurance coverage, and adequate flood insurance coverage, if applicable
If you're an existing loan customer and would like to make a one-time or recurring payment, visit our Online Loan Payment site.
Home Equity Line of Credit Calculators
Know before you borrow by using our home equity line of credit calculators, including How Much Will My Loan Payments Be and How Much Can I Afford to Borrow?
Home Equity Loans
Is a fixed rate, term and payment a better option for you? Check out our Home Equity Loans. Plus, you won't pay closing costs or processing fees with our current promotion3
FAQs
To help you better understand home equity lines of credit (HELOC), we've answered some common questions.
HELOC interest rates vary depending on factors like the line of credit amount, your credit score, loan-to-value ratio, and the rate environment. First Commonwealth Bank offers competitive rates on HELOCs, with a current special of 5.99% APR for 6 months, which adjusts to as low as 7.01% APR. Visit your local branch or call us at 1-844-711-2265 (BANK) to discuss our current rates and find the best option for your needs.
It depends on your financial situation. A HELOC can be a smart choice if you have equity in your home and you need funds for home improvement, debt consolidation, large purchases, or you want to have something in place in case of future emergencies. The debt consolidation can include paying off high rate credit cards and personal loans/ lines that may lower your monthly payment. However, since your home serves as collateral, it's crucial to borrow responsibly and have a solid repayment plan. You should carefully consider your budget, interest rates and how you'll use the money before deciding.
When you take out a HELOC, you gain access to a revolving line of credit secured by your home. You can withdraw funds and pay back as you need during the draw period, generally five to ten years, and only pay on the amount borrowed. After the draw period ends, you'll make principal and interest payments during the repayment term.
A HELOC works similarly to a credit card, but instead of being unsecured, it's secured by your home. The amount you can borrow depends upon your loan-to-value, which is a percentage of your home's value minus what you still owe on any mortgages you may have in place. While you're in the draw period, you can borrow money as needed, and you’ll make a monthly payment on what you draw. You’ll have the option to make principal and interest payments or interest only during the draw period. Once you're in the repayment period, you'll pay back the principal plus interest.
To figure out how much you can borrow, lenders will first appraise your home to determine its value. They'll calculate a percentage of the value, typically 80 to 90%, and subtract any remaining mortgage balances from that amount. What's left is the maximum credit limit for your HELOC. Keep in mind, your actual approved limit might be lower based on factors like your credit score, income and debt-to-income ratio.
To get approved for a HELOC, you need to have equity in your home, usually at least 15%. Lenders also look at your credit score, a steady income, a good employment history and a reasonable debt-to-income ratio, which shows you can afford to repay the loan. Every lender is different, so it's best to talk to us about your situation and options.
Request More Information Today
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1 After the 5.99% Annual Percentage Rate (APR) 6-month introductory period, the APR on a home equity line of credit will be a variable rate based on Wall Street Journal Prime Rate (7.50% as of 12/19/24) plus or minus a margin (currently as low as Prime Rate – 0.49% or 7.01%). The maximum rate is 18% and the product floor rate is 2.99%. Prime may change at any time and is subject to change without notice. The introductory period begins on the date of account opening.
After the introductory period ends, any and all remaining balances will automatically convert to the variable APR per the terms of the Home Equity Line of Credit agreement. In order to receive the offered rate, a minimum of $10,000 in new money and direct debit of loan payment from a First Commonwealth Bank checking account is required, otherwise the rate may be higher. An early termination fee of $500 or 2% of the line amount, whichever is less, may apply if the line is closed within 36 months of account opening. An Annual Fee of $50 will be charged to your credit line. A $75 rate lock or unlock fee may be charged if you use the rate lock feature to convert a portion of your balance between a variable rate and a fixed rate. If a deed transfer is necessary, title insurance and attorney's fees may be required. Taxes and property insurance are always required and flood insurance is required where necessary. Consult your tax advisor about the deductibility of interest. Other rates and terms are available. Offer valid for applications April 1, 2025 through May 31, 2025. Offer subject to change or withdrawal at any time.
For home equity lines of credit with principal and interest payments, offer is based upon loans $10,000 to $500,000, a loan to value up to 89% on an owner-occupied primary residence, subject to credit approval, and cannot be a purchase money mortgage.
For home equity lines of credit with interest only payments, offer is based upon loans $10,000 to $500,000, a loan to value up to 80% on an owner-occupied primary residence, subject to credit approval, and cannot be a purchase money mortgage. Interest only payments will convert to principal and interest payments at the end of the 10-year draw period.
2 Processing and Third Party Fees ranging from $475 to $915 will not be assessed. If a deed transfer is necessary, title insurance and attorney’s fees may be required.
3 Offer is based upon first and second lien loans of $25,000 to $500,000, a loan to value up to 80% 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 checking account are required in order for Processing and Third Party fees, ranging from $475 to $915, 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 6.54% APR, the monthly payment would be $489.62; or if you borrow $25,000 secured by an owner-occupied home for 240 months at 6.96% APR, the monthly payment would be $193.22. 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 April 1, 2025 through May 31, 2025. Offer subject to change or withdrawal at any time.