Closing costs are part of the costs of setting up a home equity loan or line of credit. They are similar in nature to those you pay when you get a mortgage. Closing costs can include such things as:
- Fee for property appraisal
- Application Fee
- Attorney's Fees
- Title Search
- Mortgage Preparation and Filing Fees (Dependent on Municipality)
- Property and Title Insurance
According to LendingTree.com, these fees can be between 2 and 5 percent of the loan.
Thus, closing costs on a $50,000 HELOC would be between $1,000 and $2,500 depending on your location, loan to value ratio, and local laws.
There are no application fees or closing costs on a Home Equity Loan or Home Equity Line of Credit from Hanscom FCU. However, if a discharge is requested within 24 months of closing, the member must reimburse Hanscom FCU for all closing costs.
Learn more about home equity by downloading our free Equity Edge eBook. This eBook will introduce you what home equity is, how to access it, how to qualify, what to ask when shopping for a HELOC, and how our 3 in 1 Advantage Plan works.