+1 vote
On line of credit $25000
asked Feb 4, 2018 in Home Equity Loans by Frankie

2 Answers

+1 vote
Hello, Frankie, and thank you for your question.

HELOC closing costs can be very low, even zero. However, you'll usually pay for a low-cost HELOC with a higher interest rate.

HELOC closing fees depend a lot on your credit rating and the home's loan-to-value, but they are low because the rate is variable, transferring much of the interest rate risk to you, the borrower.

Note: if you expect to take the entire term to pay off a high balance, consider a fixed second mortgage. It's safer in the event rates rise.

Thank you for writing.
answered Feb 5, 2018 by GinaPogol (47,650 points)
0 votes
HELOC's are originated by banks and not mortgage companies. Closing Costs depends on the particular bank, the city and county the property is located. Example of closing costs are appraisal fees, title charges, recording fees, etc.

Gustan Cho NMLS 873293
answered Feb 6, 2018 by GustanCho (106,540 points)

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