If you have a mortgage question regarding payments, escrow, or the transfer of your loan: please call 866.937.1134

Paycheck Protection Program: Key Changes & Updated Applications

Let's Talk Home Equity

3 Ways to Increase the Value of Your Home


Upgrading your living situation doesn't have to mean moving to or building a new house. Sometimes the smartest move is to invest in your current home, especially if you have some equity.

You can't control the housing market or the cost of construction materials. But with the right loan or line of credit, you can increase the value of your home, no moving trucks needed. Plains Commerce Bank offers three convenient options for home improvement projects.

Cash-Out Refinance

Refinance your current mortgage to pull equity out of your home as cash, while potentially lowering your interest rate in the process.

Home Equity Line of Credit (HELOC)

Allows you to access the equity in your home through a revolving line of credit.

Home Improvement Line of Credit

A second mortgage to support home improvement projects.

Get started today.

Fill out the short form below to drop us a question or idea. Our mortgage team is happy to help.

Let's Talk

Cash-Out Refinance

A cash-out refinance replaces your existing mortgage with a new loan that's greater than the amount you own on your house. After covering the remainder of your mortgage and closing costs, you receive a check to use on home improvement or other projects.

  • No cost options available
  • One monthly payment
  • 10-to-30-year term
  • Fixed interest rate
  • Maximum loan amount equal to 80% of your home’s value

Cash-Out Refinance Example

Say you owe $200,000 on your $400,000 home. Using a cash out refinance, you obtain a loan for 80% of the home’s value, or $320,000 (80% of $400,000). The $200,000 you owed is paid off, putting $120,000 cash in your pocket.


Home Equity Line of Credit (HELOC)

A HELOC is like a credit card connected to your home equity. You will receive a second mortgage (called a "junior mortgage") from which you can draw to cover home improvement expenses.

  • Funds can be used for any purpose
  • No-fee setup available
  • Interest only monthly payment
  • Only pay interest on the outstanding balance on the line (similar to a credit card)
  • Maximum combined loan amount equal to 90% of your home’s value

HELOC Example

Say you owe $300,000 on your $400,000 home. Using a HELOC, a second mortgage is attached to your property and you are set up with a $60,000 revolving line of credit through the following calculation:

  • $400,000 home value * 90% loan max = $360,000 maximum debt allowed
  • $360,000 - $300,000 owed = $60,000 HELOC


Home Improvement Line of Credit

A Home Improvement Line of Credit (HILOC) is similar to a standard construction loan. The main difference is that a HILOC is considered a second mortgage, rather than an independent loan.

  • Funds must be used for home improvement
  • Interest only monthly payment
  • Only pay interest on the outstanding balance on the line (similar to a credit card)
  • Maximum loan amount equal to 80% of your home’s future value after improvements
  • Must be working with a qualified contractor

HILOC Example

Again, you owe $300,000 on your $400,000 home. You plan to add $100,000 of improvements to the home and expect the home to be worth $500,000 once completed, which the bank will verify by obtaining an “as-complete” appraisal.

Using a home improvement line of credit, a second mortgage is attached to your property and you are set up with a $100,000 home improvement line of credit through the following calculation:

  • $500,000 future home value * 80% loan max = $400,000 maximum debt allowed
  • $400,000 - $300,000 owed = $100,000 Home Improvement Line of Credit


Ready to level-up your place?

Our mortgage team is happy to answer any questions you may have about home improvement loans or lines of credit. We're committed to keeping the process simple and easy for you. Complete the form below to get started.

Interested in new construction?

Explore new home construction loans with Plains Commerce Bank.

Learn More

*APR, terms and conditions subject to credit approval. Property insurance required. APR is variable rate based on The Wall Street Journal prime rate plus a margin, currently 3.25%. APR is based on a LTV of 80% or less, may be higher depending on certain credit factors. Maximum APR is 24.00%. $0 annual fee applies. Closing costs may apply and range between $0 and $1,562.50. Minimum monthly payment equal to the interest that accrued on the outstanding balance during the preceding billing cycle during the draw period of 5 years. Plains Commerce Bank does not have a minimum balance requirement or a repayment period. At the end of 5 years, the line balloons and either has to be renewed or paid off in full. Plains Commerce Bank does not have a prepayment penalty and there is no maximum line of credit amount.

A home improvement line of credit in the amount of $250,000 for 12 months at a simple interest rate of 4.75% would yield an average monthly interest only payment of $504.28 per month and an annual percentage rate (APR) of 4.96%.

**A loan of $250,000 for 30 years at a simple interest rate of 3.375% would yield a payment amount of $1,105.24 per month and an annual percentage rate (APR) of 3.488%.

Payments do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation will be greater.

All credit and loan products are subject to credit approval. Loan programs subject to qualification.

Leaving plainscommerce.com

While we offer this link for your convenience, please note that we are not responsible for the content provided by third-party websites. We encourage you to review the policies of any website prior to sharing personal information to ensure privacy and security. Any products or services accessed through this link are not provided by, endorsed or guaranteed by Plains Commerce Bank.

Continue Stay on plainscommerce.com
External Popup