Home Equity Products

If you're looking for a loan that offers potential tax deductibility, low interest rates, as well as convenience, consider a home equity loan or line of credit from Principal Bank. Whether you want to:

Remodel your home
Consolidate your debt
Take a long-awaited vacation
Buy a new car
Pay for college expenses

A home equity loan or line might be the perfect solution. Principal Bank offers:

Home Equity Loans

Consolidate your bills, or make that special major purchase, and enjoy fixed, lower interest rates and set payments. Plus, interest on your loan may be tax deductible (consult your tax advisor).

Low fixed-interest rates-as low as 7.45%* APR for 5 years or 7.55%* APR for 10 years
No closing costs**
Flexible terms with fixed monthly payments for the first 5 years. Click here for payment options and a calculator
Approval notification within 48 hours
Online balance information

*This offer is available for a limited time and may be discontinued without notice. Subject to credit qualification. This APR is a Preferred Rate reflecting a .25% discount based on all regularly scheduled payments being paid by automatic debit from a bank account. Failing to accept the terms of the automatic loan payment, or failing to maintain automatic payments once set up will result in a higher APR on the loan. 7.45% APR available for 5-year terms on loan-to-equity values of less than 80% and loan amounts of $25,000 or more. 7.55% APR available for 10-year terms on loan-to-equity values of less than 80% and loan amounts of $25,000 or more. Other interest rate plans are available for higher loan-to-value ratios. Not available on properties located in Texas. Offer only available on owner-occupied primary residence properties. Cannot be used for real estate bridge loans or business purposes. Not available on manufactured homes. Please refer to Home Equity Loan Important Terms for additional terms, fees and costs.

**No closing costs does not apply to appraisal costs, mortgage filing fees and taxes, if any. No closing costs offer is not available for properties located in South Carolina. A $500.00 deferred origination fee applies to all Home Equity Loans. This fee will be deferred until the third anniversary of the loan, and will be permanently waived if the loan remains open after that date.

Home Equity Lines of Credit

A Home Equity Line Of Credit from Principal Bank combines the advantages of a home-equity-based credit line with the convenience of online banking. You can establish credit based on the equity in your home, and use it as needed--to make a major purchase, for remodeling projects, a family vacation, or for emergencies. Once approved, the line is yours to use when and where you need it simply by writing a check.

0.59% 2-month introductory APR*
Rates as low as 4.99%¹ after the first 2 months
No closing costs**
Competitive rates based on Wall Street Journal Prime Rate after the introductory period
Interest may be tax deductible (consult your tax advisor)

*For a limited time, Principal Bank is offering a special 2-month introductory APR of 0.59% on home equity lines of credit for applicants with loan-to-values of less than 90%. 0.59% introductory APR is subject to Principal Bank's credit criteria, certain conditions and restrictions, and loan-to-value ratios of less than 90%. After 2 months, your rate is variable, indexed to the Prime Rate as published in the Wall Street Journal plus a margin, if applicable. As of May 1, 2008, the Prime Rate was 5.00%. Post-introductory APR can change daily.

¹This APR is a Preferred Rate reflecting a .25% discount based on all regularly scheduled payments being paid by automatic debit from a bank account. Failing to accept the terms of the automatic loan payment, or failing to maintain automatic payments once set up will result in a higher APR on the loan.

General Requirements for all Principal Bank Home Equity Loans and Lines of Credit

80% CLTV maximum in the states of AZ, CA, FL, MI, NV, OH. General Requirements and Undewriting Criteria are subject to change at any time.

**No closing costs does not apply to appraisal costs, mortgage filing fees and taxes, if any. A $500.00 deferred origination fee applies to all Home Equity Loans. This fee will be deferred until the third anniversary of the loan, and will be permanently waived if the loan remains open after that date.

All Principal Bank home equity loans are subject to satisfactory appraisal, title and insurance. Home equity products are available on primary residence only and are not available for properties located in Texas. Offer only available on owner-occupied primary or secondary residence properties. Cannot be used for bridge loans or business purposes. Not available on manufactured homes.

Please refer to Home Equity Line of Credit--Important Terms (PDF: 90 KB) for additional terms, fees and costs. Applicants for Home Equity Lines must also read What You Should Know About Home Equity Lines of Credit (PDF: 117 KB) (This document requires Adobe Acrobat Reader)

Before you begin, gather the following information to make the application process quick and easy.

Estimated value of your property
Current mortgage balance and payment
Social Security Number
Current employer's name and address
Gross monthly income
Co-applicant information
Homeowners insurance company name and phone number or agent's name and phone number