Home Equity Lines of Credit
A home equity line of credit uses the equity you’ve built in your home to help you borrow for the unexpected or finally renovate that outdated bathroom. The equity in your home is determined by subtracting the amount you owe on any mortgage or loans that are secured by your home from the current market value of your home. With a First Commonwealth Bank FlexChoice home equity line of credit, you have the flexibility to draw from your line to access cash as you need it, either in small or large amounts. Here's a quick video with Ashley, one of our bankers, to explain:
A home equity line of credit versus a home equity loan is a personal decision based on your financial situation. With a home equity line of credit, you have access to borrow a portion of the amount now or at any time during the term of your line. Your line will have a variable rate and you will only make payments on the amount you use (or “draw”) from your line. With a home equity loan, you receive the entire amount requested with a fixed rate term and payment.
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 – using the equity in your home can be a powerful way to consolidate multiple high-interest bills, and a home equity line of credit can make it happen.
- 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 85% 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 4.99% APR for 6 months which adjusts to as low as 8.24% 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 Loans
Is a fixed rate, term and payment a better option for you? Check out our Home Equity Loans.
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1 After the 4.99% 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 (8.50% as of 7/27/23) plus or minus a margin (currently as low as Prime Rate – 0.26% or 8.24%). 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 will be 0.25% 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 February 1, 2024 through March 31, 2024. 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 85% 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.