Common Fees Associated with Accessing HELOC Funds
1. Application Fee: Some lenders may charge an application fee when you apply for a HELOC. This fee covers the administrative costs of processing your application. 2. Annual Fee: Many HELOCs come with an annual fee that is charged for the maintenance of your line of credit. 3. Transaction Fee: Some lenders may charge a transaction fee each time you access your HELOC funds, such as through a check or online transfer. 4. Closing Costs: When you close your HELOC, you may be required to pay closing costs, similar to those associated with a mortgage. 5. Early Termination Fee: If you pay off your HELOC before a certain period, some lenders may charge an early termination fee. 6. Inactivity Fee: Some lenders may charge an inactivity fee if you do not use your HELOC for an extended period. 7. Interest Charges: While not a fee, the interest you accrue on the borrowed funds is an essential cost to consider when accessing a HELOC.