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What fees can my lender charge if I take out a HELOC?

Before you take out a Home Equity Line of Credit (HELOC), be sure to read the documents carefully to see what fees your lender can charge you.

Under some plans, lenders might charge you:

  • An application fee – a fee when you apply for a HELOC
  • Origination, appraisal, title, or other closing costs fees – fees when you open an account
  • An inactivity fee – a fee for not using your HELOC
  • An annual or membership fee – a fee each year you have the HELOC
  • A cancellation fee – a fee for terminating the HELOC early, usually within the first two or three years
  • A conversion fee – a fee for converting a portion of your balance to a fixed interest rate