HELOC Closing Costs: How Much You’ll Pay to Tap Equity
On average, HELOC closing costs range from 2% to 5% of your total loan amount. You can expect similar costs with a home equity loan.
But with a little extra comparison shopping, you can find a loan with lower costs, or even no closing costs.
Tapping your home equity to remodel your kitchen, consolidate credit card debt or pursue other financial goals can be a great option — but don’t forget about the closing costs.
You should budget 2% to 5% of your home equity line of credit (HELOC) limit or home equity loan amount for closing costs.
HELOC and home equity loan closing costs and fees typically include:
- Appraisal fee
- Credit report pull
- Document prep and attorney fees
- Loan origination fee
- Notary or signing fee
- Title search and insurance
Below is a breakdown of all these costs and fees and how much you’ll pay.
Home equity loan and HELOC closing costs and fees
Appraisal fee
Approximate cost: $300 to $500
A home appraisal provides your lender with a professional estimate of your home’s value. Some lenders use options that cost less, including automated systems or a “drive-by” appraisal that doesn’t involve someone stepping into your home.
Credit report
Approximate cost: $100 to $250+
Lenders typically pull your credit report from at least two or three credit bureaus. Your score proves whether you’re eligible for a loan, but also helps your lender zero in on the exact home equity rates they’re willing to offer you.
Fees for credit report pulls have skyrocketed in the last few years — in some cases by 25% to 400%, according to a report from the Consumer Financial Protection Bureau — and mortgage industry insiders expect we could see a 50% increase in 2026. So be prepared to pay more as part of your closing costs.
Don’t know your credit score? Get your free score, expert financial tips, and more on LendingTree Spring.
Document preparation and attorney fees
Approximate cost: $100 to $2,000
There may be a fee for preparing the legal documents related to your loan. This may also be called a set-up fee or application fee.
Loan origination fee
Approximate cost: Typically 0.4% to 1% of your loan amount or a flat fee set by the lender
You may pay an origination fee to the loan officer, underwriter and other people involved with your loan. It may be a flat fee or a percentage of your loan amount.
Notary or signing fee
Approximate cost: $20 to $300
To avoid mortgage fraud, lenders require you to sign your documents with a notary or signing service. Their job is to verify your identity and make sure the paperwork is correctly signed.
Title search
Approximate cost: $100 to $250
Lenders check your title to make sure there aren’t any past-due taxes, judgments or other ownership issues attached to it.
Title insurance
Approximate cost: 0.4% to 1% of your loan balance
It’s up to your lender whether you’ll be required to pay for the lender’s title insurance when taking out a HELOC or home equity loan, but most will require some form of title protection.
You’ll also have the option to purchase owner’s title insurance separately, which protects you if title issues come up after closing. Title insurance costs vary by location and property type.
Learn more about home equity loan requirements.
HELOCs come with ongoing fees
Home equity lines of credit typically have many of the same closing costs as a home equity loan, but they come with some unique ongoing fees that home equity loans don’t, including:
- Annual fees
- Inactivity fees
- Early termination fees
- Minimal withdrawal fee
Annual fees
Approximate cost: $0 to $100
You may be stuck with an annual membership fee, even if you never use your credit line. The amount can vary depending on your lender, so if you really hate to pay an annual fee, shop around — many lenders don’t charge one.
Compare LendingTree expert picks for the best HELOC lenders.
Inactivity charges
Approximate cost: $200 to $500
Lenders make their income on interest charged, so if you don’t use your credit line, they don’t make any money. As a result, they may charge you an inactivity fee. If you don’t have immediate plans to use your HELOC, avoid opening one that includes this fee.
Early termination fees
Approximate cost: $0 to $500
Many lenders require you to keep your HELOC open for a specific number of years (usually two or three). If you close your account too early, your lender may charge an early termination or cancellation fee that’s either a percentage of your loan amount or a flat fee.
Learn more about home equity and HELOC loan terms.
Minimum withdrawal fee
Approximate cost: $25 to $50 per withdrawal
You may be required to take out a minimum amount when you close on your HELOC. If you can’t meet that minimum threshold, you can be on the hook for a small fee.
HELOC rates are usually variable, and if they rise sharply, your payments could become unaffordable — especially during the final repayment period. Your lender may offer an option to convert your variable HELOC rate to a fixed interest rate, which can help make your payments more affordable. But there may be additional fees to make the switch, so check your closing paperwork or double-check with your lender if you’re unsure of their policy.
Learn more about HELOC requirements.
Does a no-closing-cost home equity loan really save you money?
No-closing-cost home equity loans and HELOCs don’t necessarily save you money.
While there are some lenders who offer true no-closing-cost home equity loans or HELOCs, more often the lender will have a way of making sure they recoup those costs. In many cases, this means either:
- Rolling the closing costs into your loan amount; or
- Raising your interest rate to cover the closing costs.
The real perk of a no-cost loan is that you get to borrow money without draining your bank accounts.
A no-closing-cost HELOC or home equity loan can make sense if you have other plans for your cash right now. You may decide it’s worth it to pay a little more interest over the long term.
4 ways to lower your HELOC or home equity loan closing costs
1. Borrow less
Loan fees are often charged as a percentage of your loan amount: the less you borrow, the less you’ll pay in closing costs. Avoid the temptation to borrow as much as possible or more than you intend — if you borrow more than you can afford to pay back, you could lose your home to foreclosure.
Use LendingTree’s home equity calculator to estimate how much you could borrow from your home.
2. Find a no-closing-cost home equity lender
If you don’t want to pay your closing costs all at once, you may be able to find a no-cost home equity loan.
Just be sure you understand the trade-offs: you’ll probably have a higher monthly payment and pay more in interest over the long term.
Review LendingTree expert picks for the best home equity loan lenders.
3. Take the autopay option
Lenders may give you a discount on your home equity closing costs or interest rate if you’re willing to set up automatic payments from a checking or savings account at their bank.
4. Shop around
Not all home equity loans are created equal — there are lenders that specialize in high-LTV-ratio home equity loans, while others cater to borrowers who want fast closings or large loan amounts.
LendingTree is a free, safe, and secure way to quickly compare rate quotes from a network of vetted home equity lenders.
According to 2025 LendingTree data, borrowers that use LendingTree to compare offers can save $80,000+ over the life of a 30-year loan.
When banks compete, you win.
Get started by filling out our form below to see competitive home equity rate offers today.
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