Typical closing costs on a home equity loan
Many lenders charge fees to set up a home equity loan. They vary widely by lender, loan size and location.
- Origination or lender fees
- Appraisal or valuation fee
- Credit report fee
- Title search and lender's title insurance
- Settlement or closing agent fee
- Government recording fees and taxes
What CapCenter covers
With ZERO Closing Costs, CapCenter pays or waives the closing costs typically required on a home loan, when the loan meets the offer terms. On a home equity loan, the loan amount must be more than $50,000.
- Origination, credit report, flood certification, tax service, title search, wire and delivery fees
- Lender's title insurance, settlement agent fee and appraisal, when required and provided by an approved agent
What you may still pay
Government fees and taxes to record the mortgage or deed of trust may apply, depending on your property's location. Some areas charge little. Others charge more. Escrow deposits and prepaid interest aren't covered either, if they apply to your loan.
How fees change the math
Hypothetical example. Say a lender charges $2,500 in fees on a $75,000 home equity loan. That's more than 3% of what you borrow. If the fees come out of your loan, you have less for your project. If they're added to the loan, you pay interest on them for years.
With no lender closing costs, more of your loan goes to what you borrowed it for.
Where to see your costs
Your Loan Estimate lists expected costs soon after you apply. Your Closing Disclosure shows final costs at least three business days before closing. Compare the two, and ask your loan consultant about anything that changed.
Comparing offers
When you shop, compare the rate and the fees together. A low rate with high fees can cost more than a slightly higher rate with none. With ZERO Closing Costs, the APR sits very close to the rate, which makes comparing offers simpler.
Questions to ask any lender
Fees can hide in different places, so ask the same questions of each lender you talk with. Get the answers in writing on a Loan Estimate so you can line them up.
- Which fees will I pay at closing, and which are paid or waived?
- Will any fees be added to my loan balance?
- Is an appraisal required, and who pays for it?
- Are there annual fees or a prepayment penalty?
- Which government recording fees apply where I live?
