Home Equity Financing - Principal Bank
Put the equity in your home to work for you. A home equity loan or line of credit can be a smart way to finance home improvement projects, large purchases, debt consolidation, and even college tuition.
Borrowing against the equity you've built in your home can lower your interest payments. Home equity loans and lines of credit typically have lower interest rates than most credit cards, and the interest is often tax-deductible (consult your tax advisor).
Principal Bank home equity loans and lines of credit offer low rates, no closing costs and convenient ways to make your monthly payments.
Home Equity Lending Product Comparison
See the table below for a comparison of home equity products.
| Home Equity Loan | Home Equity Line of Credit | |
|---|---|---|
| Loan Type | One time funding | Flexible line of credit that can be reused as balances are paid down |
| Interest Rates | Fixed for the first five or ten years. | Variable, based on Wall Street Journal Prime Rate |
| Payment Options | Fixed monthly payments for the first five or ten years. Click here for more info. | Variable monthly amount of interest only[1] |
| Access to Funds | Initial funding of loan in a single check and/or payment to creditors for debt consolidation | Principal Bank Checking Account or access checks |
| Interest Deductibility | Tax deductible in most cases | Tax deductible in most cases |
| Amount You Can Borrow | $10,000 - $200,000 | $10,000 - $200,000 |
| Uses | Home improvements, debt consolidation, vacation, college tuition, emergency, whatever you need[1] | Home improvements, debt consolidation, vacation, college tuition, emergency, whatever you need[1] |
| Term | 5 or 10-year term or 5-year term with a 15-year or 20-year amortization[1]. Click here for more info. | 10-years |
| Statements | Monthly in the mail (unless payment automatically withdrawn from your checking account), and online | Monthly in the mail (if activity or outstanding balance), and online |
| Additional Terms, Fees and Costs | Please refer to Home Equity Loan Important Terms | Please refer to Home Equity Line of Credit Important Terms (PDF: 90 KB) |
Visit our Home Equity Specials page for more detailed information on current line and loan promotions.
- [1]
- 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.
- Note: Home Equity loans and lines of credit are not available in the state of Texas. Consult your tax advisor regarding tax deductibility.
