What are your closing costs on a Home Equity Loan?

Closing costs are part of the costs of setting up a home equity loan or home equity line of credit (HELOC). They're similar in nature to the closing costs you pay when you get a mortgage. Closing costs can include such things as:

A fee for property appraisal
An 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 run between two and five 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.

Even if these fees are waived on the condition that you keep your loan or line open for a specific amount of time, you should ask for an itemized list of closing costs when you establish a home equity loan or HELOC.

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.