Common HELOC Closing Costs
While many lenders offer "no closing cost" HELOCs, some fees may still apply. Common costs include appraisal fees, title search fees, and government recording fees.
Expert Tips for Smart Borrowing
📄Pro Tip
Read the 'Fee Wrap'
Ask specifically: 'If I close this account in 12 months, what penalities do I owe?' The answer is usually hidden in the fine print.
🚗Pro Tip
The 'Drive-By' Appraisal
Ask if they can use an 'Automated Valuation Model' (AVM) instead of a full appraisal. It's faster and usually free.
🤝Pro Tip
Credit Union Advantage
Credit Unions often absorb 100% of closing costs to win your business. Always get a quote from a local CU.
🗣️Pro Tip
Ask for a Waiver
Many fees (like application or processing fees) are discretionary. Simply asking 'Can you waive this?' often works if you have good credit.
Frequently Asked Questions
Yes, but they are often subsidized. The 'real' cost includes appraisals ($500), title search ($300), recording fees ($100), etc. Many banks waive these if you keep the line open for 3 years. If you close it early, you pay them back.
This is the 'clawback'. If a bank pays your $800 closing costs, they expect to make interest off you. If you open a HELOC, use it for 2 months, and close it, they lose money. They will charge you an Early Closure Fee (often $300-$750) to recoup losses.
In some states (like Georgia or South Carolina), yes, an attorney is required to perform the closing. This adds to the cost/time. In most states, a notary can do it at your kitchen table.
Commonly yes, around $50-$75 per year. Some lenders waive it for the first year or if you have a checking relationship with them.
Unlike a mortgage Refi where you can roll thousands into the balance, HELOC costs are usually small enough that people pay cash. Some lenders allow financing of fees, but it eats into your available credit limit.