Loans Information
- How do I apply for a loan from Principal Bank?
- What types of loans are offered?
- What is the difference between a Home Equity Loan and a Home Equity Line of Credit?
- What are the terms for loans?
- What is the minimum loan amount?
- What is the underwriting criteria for loans and lines of credit?
- How long does it take to find out if I've been approved for a loan and for it to close?
- How does a Home Equity Line Of Credit work?
- How do I make advances from my line of credit?
- How do I make non-scheduled loan payments?
- What is my available credit limit?
- How do I determine loan payoff information?
- Where do I send loan payments?
How do I apply for a loan from Principal Bank?
You may complete an application online. Or you may contact a personal banker at 1.800.672.3343 7 AM to 9 PM (Central time), seven days a week, excluding holidays and they can take your application information over the phone.
What types of loans are offered?
Home equity loans and lines of credit, as well as VISA credit cards.
What is the difference between a Home Equity Loan and a Home Equity Line of Credit?
With a loan, you borrow a fixed amount and pay it back within a specified amount of time with a fixed monthly payment. Line of credit accounts offer the ability of continually drawing against a credit limit, and while monthly payments are still required, payment amounts may vary each month depending on your line of credit balance. As you pay down the balance, you replenish the amount available to you, up to your established credit limit.
What are the terms for Principal Bank loans?
They vary by type of loan:
Home Equity Lines of Credit - 10 years
Home Equity Loans - 5-year and 10-year terms, with a fixed interest rate or 5-year fixed rate with a 15-year or 20-year amortization. Learn more about amortization.
What is the minimum loan amount?
They vary by type of loan:
Home Equity - $10,000
Credit card - $500
What is the underwriting criteria for a loan?
The bank looks at multiple criteria including, but not limited to:
- Good personal credit
- Debt to income ratio of 45% or less (including new loan payment)
- Stable employment for past 2 years
- Residency established for 1 year or more
- Equity you have in your home
How long does it take to find out if I've been approved for a loan and for it to close?
You will be notified within 48 hours of receiving your completed application. For home equity loans and lines of credit, the closing process can take up to three weeks due to the three-day right of rescission.
How does a Home Equity Line Of Credit work?
Based on the equity in your home, a line of credit can be established. This line can be used anywhere or at any time you choose - all at once or a little at a time - simply by writing a check. Once your line of credit is in place, no preapproval is needed for purchases or advances. As balances are paid down, those dollars are once more available, up to your established credit limit. And best of all, interest on a home equity line of credit is generally tax deductible (consult your tax advisor for additional information).
How do I make advances from my line of credit?
There are multiple ways to do this:
- Simply write a check from the special set of "Access Checks" you will receive when your Home Equity Line is established. Checks must be written for $500 or more.
- Through the Internet, you can access your account and make transfers between Principal Bank accounts online. For example, you may transfer available funds from your Home Equity Line of Credit to your Principal Bank Checking account online.
- Contact a personal banker at 1.800.672.3343 7 AM to 9 PM (Central time), seven days a week, excluding holidays, to request a transfer from your line of credit into your Principal Bank checking account.
How do I make non-scheduled loan payments?
You must first login to your Principal Bank deposit account. Go to Transfers on your account information screen and schedule a transfer to your loan account from your deposit account. The amount transferred will be applied to the principal balance only, and will not reduce your interest.
What is my available credit limit?
You will receive a monthly statement that includes credit limit information, or you may view your available credit 24 hours a day, 7 days a week by looking at your account information online.
How do I determine loan payoff information?
Please call a personal banker at 1.800.672.3343 7 AM to 9 PM (Central time), seven days a week, excluding holidays, for this information.
Where do I send loan payments?
Send loan payments to the following address:
Principal Bank - Loan Payments
PO Box 857
Des Moines, IA 50304-0857
