I wanted to take out a Home Equity Line of Credit but my lender told me the terms have changed. What can I do?
When you apply for a HELOC, the lender must give you important information about the terms and costs of your HELOC. This information includes the length of the draw and repayment periods, fees and costs you may be charged by the lender, an estimate of fees you may be charged by third parties to close the HELOC (such as appraisal fees), an explanation of how your minimum payment is calculated, and information about how the annual percentage rate may change.
A creditor must refund all fees you paid if you tell the creditor that you do not want to open an account:
- For any reason within three business days after you receive the application disclosures (as discussed above), or
- Any time before your account is opened if any of the terms disclosed in the application disclosures change
If the home used to secure your HELOC is your principal dwelling, then you have three business days from the day you open your account or the day you receive the account-opening disclosures (whichever is later) to change your mind and cancel your HELOC. You can change your mind for any reason. You just have to inform the lender in writing within the three-day period that you have changed your mind. The lender must then return all of the fees, including any fees to third parties, that you paid to open your HELOC.
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