Home Equity Loans & Lines of Credit

Leveraging the equity you've built in your home is a great way to take advantage of smart borrowing options.

With a home equity loan or line of credit, you can:

• Get the financing you're looking for to consolidate debt, remodel your home, pay tuition or make a major purchase.
• Enjoy a lower interest rate than most credit cards and other types of loans.
• Save money; interest paid may be tax deductible¹.
• Simplify your finances by consolidating to a single monthly payment.

Plus, with our flexible variable rate Home Equity Line of Credit, you can convert outstanding balances to a fixed interest rate for a fixed term when you decide the time is right with up to 5 fixed rate segments at any one time. This stabilizes your monthly budget and lets you lock at a fixed interest rate so you can avoid paying more interest if variable rates rise (contact your local banking center for current interest rates and terms on our fixed rate Equity Line segments).

Which Home Equity Option With No Closing Costs² is Right for You?

All loans and lines of credit are subject to approval, including verification of acceptable income, creditworthiness, and property valuations. Minimum and maximum property values and maximum loan-to-value ratios apply.

¹ Consult your tax advisor regarding deductibility of interest.

² RBC Bank will pay closing costs on Owner Occupied Home Equity Loans and Home Equity Lines of Credit between $25,000 and $250,000 (except on first lien Home Equity Loan transactions), including up to $250 in attorney fees in South Carolina, if an attorney close is required. Standard closing costs include property valuation, title verification, doc stamps and intangible taxes (where applicable), credit bureau, flood verification, recording, and courier expenses.   For Owner Occupied Home Equity Loans and Home Equity Lines of Credit over $250,000, RBC Bank will pay up to $500 in closing costs in NC, SC and AL, and $750 in GA and VA, and $1,000 in FL.  RBC Bank will be entitled to recover 100% of the bank-paid closing costs if the loan or line of credit is closed within 36 months of being established. Property insurance and flood insurance (if applicable) must be in effect on the property securing the account. Title insurance may be required.  Trusts and LLCs will be subject to a legal review fee at the client's expense.

³ The Minimum Line of Credit in North Carolina is $15,000.

⁴ Payment example:  If you opened a new 15-year fully amortizing Home Equity Loan in North Carolina for $100,000, you would make 180 payments of $956.  Example assumes a combined loan-to-value ratio of no greater than 80% on a primary residence, good credit history and an Annual Percentage Rate (APR) of 8.09% based on an interest rate of 8.00% (current at 07/01/09) and a 1/2% prepaid origination fee of $500.  APR includes all eligible discounts, including a 0.25% discount for having automatic payments deducted from an RBC Bank account.  Actual payments and rates may be higher depending on your creditworthiness, combined loan-to-value ratio, and other factors.  You are not required to have a prior banking relationship to obtain a home equity loan at an undiscounted rate. 

⁵ Payment example:  The monthly interest-only payment amount for a $40,000 home equity line of credit in North Carolina would be $150.00 assuming a combined loan-to-value ratio of no greater than 80% on a primary residence, good credit history and full utilization of the line with an interest-only payment at an Annual Percentage Rate (APR) of 4.50% (current at 07/01/09).  APR includes all eligible discounts, including a discount of 0.25% for having payments automatically deducted from an RBC Bank account, and a margin to Prime of plus 1.25%.  Paying the minimum payment will result in a balloon payment of the entire outstanding balance of $40,000 in principal and any unpaid interest and fees due when the credit line matures. Actual payments and rates may be higher depending on your creditworthiness, combined loan-to-value ratio, and other factors. You are not required to have a prior banking relationship to obtain a home equity line of credit at an undiscounted rate.  There is a $50 annual fee.

⁶ Your Annual Percentage Rate (APR) may vary and will be established using a base rate of Prime Rate (as published in the Wall Street Journal Eastern Edition on the 25th day of the month—current rate is 3.25% as of 07/01/2009) plus or minus a margin disclosed to you at the time of application. The margin may be as low as Wall Street Journal Prime plus 1.00% or may be higher depending on your creditworthiness, loan-to-value ratio, and other factors. Rates are variable but will not exceed 16% in NC and GA, 18% in AL, SC and FL and 24% in VA.