Home Equity Loans and Lines of Credit
Use the equity in your home to your advantage. With a home equity loan or line of credit (HELOC), you can leverage the investment you have in your home as collateral to start projects that add value to your home, consolidate debt into a more manageable monthly payment, refinance your mortgage or finance major expenses.
We offer Home Equity Loans and FlexChoice Home Equity Line of credit. A home equity loan vs a line of credit is a personal decision, based on your financial situation. With a home equity loan, you receive the entire amount requested with a fixed rate. With a line of credit, you have access to borrow a portion of the amount now and into the future, with a variable rate.
What you'll need to apply:
- Verification of income
- Annual property tax amounts
- Proof of adequate homeowners insurance and adequate flood insurance coverage, if applicable
Home Equity Loan Rates & Features:
- Available for loan amounts from $10,000 to $500,000 with a fixed rate, term and monthly payment
- Terms available from 5 to 20 years
- Borrow up to 80% of your home equity as a first or second lien
- Make additional payments to your principal without penalty
- Enjoy a rate discount when you select automatic payments from your First Commonwealth checking account.
- Credit Life Insurance and Credit Disability Insurance are available for Pennsylvania borrowers
FlexChoice Home Equity Line of Credit (HELOC) Rates & Features:
- No closing costs or processing fees1
- 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 89.90% 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
- Credit Life Insurance is available for Pennsylvania borrowers
To make sure you're borrowing at a rate you can afford, use our calculators.
1 After the 1.99% 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 (3.25% current as of March 16, 2020) plus or minus a margin (currently as low as Prime Rate – 0.26% or 2.99%). 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. An early termination fee of $350 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 $35 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. 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 March 17, 2020 through June 30, 2020. 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 less than 90% 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.