There may
also be additional fees and
closing costs
associated with a home equity loan.
Sometimes you can get these costs waived or
reduced, but expect to pay a higher interest
rate for a mortgage with little or no
closing costs. Be sure to have enough to
cover these additional costs, which
typically amount to between 2 and 5 percent
of the home's purchase price.
They generally include:
-
Loan Application and
Processing Fees
-
Property
Appraisal --
especially if your home hasn't been
appraised in the last six months.
-
Attorney Fees
-
Annual Maintenance Fees
-
Points and Origination
Fees
-
Transaction Fees -- each
time you make a withdrawal from your
credit line.
-
Prepayment Penalties
-
Inactivity Fee -- if you
don't use your line of credit during a
period of time.
