PNC Bank owned by parent PNC Financial Services Group, Inc. (NYSE: PNC) is offering $100 new customer bonus to raise capital. Why does PNC Bank need a large influx of capital? This may spell trouble for the bank.

Home price declines are now so severe they have erased all home equity for more Americans than ever before. Home equity numbers have been recorded starting at the end of World War II and are now at there lowest level in history. For many home owners, their mortgage debt actually exceeds their home’s value…what is called negative home equity.

Well, the Mortgage Insider, got cited in today’s edition of the Washington Post where I discussed the financially irresponsible practice of paying off credit card debt with home equity loans.

The reporter, Dan Rafter, who interviewed me for his story,
“For Every Loan, a Proper Use: There’s More Than One Way to Tap Home Equity” did a good job outlining all views on home equity loans and treated my comments fairly as well when he writes,

You can get a home equity mortgage loan from almost any banking or mortgage institution. A broker, your local bank, big nationwide banks, credit unions, or investment firms like Etrade and others all sell home equity mortgages.

But which is the best one to use for a home equity mortgage loan?

There are dangerous differences between a HELOC mortgage and a traditional home equity loan. Ignorance of HELOC mortgage differences in home equity loans can cause real trouble.

So, let’s get started unraveling those dangers….