What are some possible fees associated with a Home Equity Line of Credit? |
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Answer:
The fees associated with a home equity line of credit The interest rates associated with home equity lines of credit are almost always variable rates, which can change throughout the life of the loan, based on the performance of the index to which they are tied. Typically, home equity line interest rates are set at the level of the index, plus a margin, which represents a set number of percentage points above the index. Many lenders offer very low introductory interest rates for equity lines of credit that increase after a specified period of time. One important thing to remember about an equity line of credit is that you only pay interest on the outstanding balance of the loan. For example, if you have a $50,000 equity line of credit but have only used $10,000 of the available credit, then you will only pay interest on the $10,000 outstanding. Typical closing costs associated with a home equity line of credit include: property appraisal fee, discount points, title search fees, attorney's costs, mortgage preparation and filing, and other related expenses. Trackback(0)
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