Home Equity Loan Rates for July 2024
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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Much Are Home Equity Loan Closing Costs?

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Content was accurate at the time of publication.

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.

On average, home equity loan closing costs range from 2% to 5% of your total loan amount. But with a little extra comparison shopping you could find a loan with lower costs — or even no closing costs.

You should budget 2% to 5% of your home equity loan amount for closing costs. 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 the costs and fees and how much you’ll pay.

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Lender process to approve a home equity loan

Lenders follow roughly the same process to approve a home equity loan as they do for a regular, “first” mortgage. They’ll typically:

  1. Order an appraisal to check your home’s value
  2. Run your credit report
  3. Verify your income
  4. Check your title report for current liens
  5. Prepare your closing documents

Each of these steps can add a line item to your costs.

Appraisal fee

  How much it costs: $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

  How much it costs: $50 to $100

Lenders typically pull your credit report from at least two or three credit bureaus. Your score not only shows the lender that you’re eligible for a loan, but also helps them zero in on the exact home equity loan rates they’re willing to offer you.

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Credit report fees are rising fast

The cost of a credit report has skyrocketed in the last few years, in some cases by 25% to 400%. Be prepared to pay more, and to do so as part of your closing costs rather than upfront.

Document preparation and attorney fees

  How much it costs: $500 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

  How much it costs: Typically 0.5% 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

  How much it costs: $150 to $200

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 and title insurance

  How much it costs: 0.5% to 1% of your loan balance for title insurance and between $100 and $250 for title search costs

Lenders check your title to make sure there aren’t any past-due taxes, judgments or other ownership issues attached to it. You’ll also need title insurance to cover the home equity loan amount, just in case title issues do arise later.

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A home equity line of credit (HELOC) is like a credit card that’s secured by your home. HELOCs typically have many of the same closing costs as a home equity loan, and come to approximately the same amount in both cases — typically between 2% and 5% of your loan amount or credit line.

Unlike a home equity loan, you can use and reuse your credit line during a set time called a HELOC draw period. That flexibility comes with ongoing costs and fees, however, and you may be penalized with a fee if you close out your credit line too soon.

Be on the lookout for additional ongoing HELOC costs including:

  • Annual fees
  • Inactivity charges
  • Early termination fees
  • Minimum withdrawals

Annual fees

  How much it costs: $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.

 Compare our picks for the best HELOC lenders.

Inactivity charges

  How much it costs: $0 to $50

Lenders make their income on interest charged — and 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

  How much it costs: $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 you an early termination or cancellation fee that’s either a percentage of your loan amount or a flat fee.

Minimum withdrawals

  How much it costs: $15 to $100

You may be required to take out a minimum amount when you close on your HELOC. If you can’t avoid this requirement, you can always just pay off the balance once you receive the cash.

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There may be additional fees for fixed-rate HELOCs


HELOC rates are usually variable, which could make your payments unaffordable down the line — especially during the final repayment period. Your lender may offer an option to convert your HELOC rate to a fixed interest rate. There may be additional fees to make the switch, so double-check with your lender if your terms still aren’t clear after reviewing your HELOC paperwork.

Some banks and credit unions offer no-closing-cost home equity loans and HELOCs, but this doesn’t always mean that you’re entirely dodging those costs. 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 them.

The real perk of a no-cost loan is that you get to borrow money without draining your bank accounts. If you have other plans for your cash right now, it can make sense to pay a little more interest over the long term.

Think a home equity loan or HELOC is right for you? Compare Top Lenders and Rates

1. Borrow less

Home equity 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.

 Try using a home equity calculator to estimate how much you could borrow.

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.

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.

Review our picks for the best home equity loan lenders and best HELOC lenders before you decide.

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