Home Equity Loan Closing Costs

hesscl34 · 06-07-2007, 04:34 PM

It is understanable for a bank to charge closing costs when getting a Home Equity Loan. I know that if you get a "line of credit" rather than a loan that they will wave the closing fees, but it is normal practice when you get a loan (because you need an appraisal) to end up paying fees? I just got a good faith with fees for about $1100, which seems high to me. $500 of it for Pre-paid finance charges????

jbcjr14 · 06-07-2007, 05:39 PM

Sometimes Bank of America will run some promotions for those in good standing with them where there are NO closing costs on said loans. I would certainly check around first!

12thMan · 06-07-2007, 05:52 PM

Quote:

Originally Posted by hesscl34

It is understanable for a bank to charge closing costs when getting a Home Equity Loan. I know that if you get a "line of credit" rather than a loan that they will wave the closing fees, but it is normal practice when you get a loan (because you need an appraisal) to end up paying fees? I just got a good faith with fees for about $1100, which seems high to me. $500 of it for Pre-paid finance charges????

Hessy, check your PM.

firstdown · 06-07-2007, 06:00 PM

I'd shop around because I hear these advertised all the time with no closing cost.

12thMan · 06-07-2007, 06:01 PM

Yeah, it really does depend on which bank you're going with.

saden1 · 06-07-2007, 06:26 PM

+1 for Bank of America.

djnemo65 · 06-07-2007, 08:11 PM

It also depends on what your credit situation is. If you have c credit or lower then those costs are not that outrageous. But if you have scores closer to 700 you should be able to do a lot better.

hesscl34 · 06-07-2007, 10:09 PM

My credit score is 730

Beemnseven · 06-08-2007, 08:29 AM

Is there any reason why you favor a Home Equity Loan over a Home Equity Line of Credit?

I recently got a HELOC and paid only $150 in closing costs. Plus, I don't start paying on it until I use it -- it's basically like a credit card. And the interest is tax deductable.

saden1 · 06-08-2007, 02:23 PM

Quote:

Originally Posted by hesscl34

My credit score is 730

If that's your score then i don't see any reason for your closing cost to be that high. With that kind of credit score they should practically be begging you to become their customer (well, maybe not if you have high income to debt ratio). Also, are you aware of your scores from all 3 credit bureau? Equifax is the most trusted and used by banks, particularly if you're in the east coast. Make sure 730 is your Equifax credit score.

Hog1 · 06-08-2007, 02:32 PM

There is a major banking chain ( I CANNOT remember it) offering 1% below prime for loans over 50k, and as long as the balance remains above 50k. When the balance falls below 50k, the rate goes to 1/2 % below prime. NO CLOSING COSTS or hidden nonsense.
I WILL remember it and re-post. I was checking it out as well to move an existing loan I have to them.

dmek25 · 06-08-2007, 07:29 PM

pre paid finance charges other then the daily interest rate are usually waived. shop around.closing costs on a second mortgage including the appraisal is usually only around $500.00- $600.00 tops.

06-07-2007, 04:34 PM	#1
hesscl34 Registered User Join Date: Jan 2006 Location: Germantown, MD Posts: 2,782	Home Equity Loan Closing Costs It is understanable for a bank to charge closing costs when getting a Home Equity Loan. I know that if you get a "line of credit" rather than a loan that they will wave the closing fees, but it is normal practice when you get a loan (because you need an appraisal) to end up paying fees? I just got a good faith with fees for about $1100, which seems high to me. $500 of it for Pre-paid finance charges????

06-07-2007, 05:39 PM	#2
jbcjr14 The Starter Join Date: Feb 2004 Location: Austin, Texas Age: 54 Posts: 2,015	Re: Home Equity Loan Closing Costs Sometimes Bank of America will run some promotions for those in good standing with them where there are NO closing costs on said loans. I would certainly check around first! __________________ "Work Harder: millions on welfare are counting on you" - Obama 2009 address to Congress.

06-07-2007, 06:00 PM	#4
firstdown Living Legend Join Date: Oct 2004 Location: chesapeake, va Age: 60 Posts: 15,817	Re: Home Equity Loan Closing Costs I'd shop around because I hear these advertised all the time with no closing cost.

06-07-2007, 06:01 PM	#5
12thMan MVP Join Date: May 2005 Location: washington, D.C. Posts: 11,460	Re: Home Equity Loan Closing Costs Yeah, it really does depend on which bank you're going with.

06-07-2007, 06:26 PM	#6
saden1 MVP Join Date: Feb 2004 Location: Seattle Age: 45 Posts: 10,069	Re: Home Equity Loan Closing Costs +1 for Bank of America. __________________ "The Redskins have always suffered from chronic organizational deformities under Snyder." -Jenkins

06-07-2007, 08:11 PM	#7
djnemo65 Playmaker Join Date: May 2004 Posts: 2,836	Re: Home Equity Loan Closing Costs It also depends on what your credit situation is. If you have c credit or lower then those costs are not that outrageous. But if you have scores closer to 700 you should be able to do a lot better.

06-07-2007, 10:09 PM	#8
hesscl34 Registered User Join Date: Jan 2006 Location: Germantown, MD Posts: 2,782	Re: Home Equity Loan Closing Costs My credit score is 730

06-08-2007, 08:29 AM	#9
Beemnseven Pro Bowl Join Date: Feb 2004 Location: Virginia Beach Age: 50 Posts: 5,311	Re: Home Equity Loan Closing Costs Is there any reason why you favor a Home Equity Loan over a Home Equity Line of Credit? I recently got a HELOC and paid only $150 in closing costs. Plus, I don't start paying on it until I use it -- it's basically like a credit card. And the interest is tax deductable.

06-08-2007, 02:32 PM	#11
Hog1 Quietly Dominating the East Join Date: Mar 2005 Location: Naples, Florida Posts: 10,675	Re: Home Equity Loan Closing Costs There is a major banking chain ( I CANNOT remember it) offering 1% below prime for loans over 50k, and as long as the balance remains above 50k. When the balance falls below 50k, the rate goes to 1/2 % below prime. NO CLOSING COSTS or hidden nonsense. I WILL remember it and re-post. I was checking it out as well to move an existing loan I have to them. __________________ Goodbye Sean..........Vaya Con Dios thankyou Joe....... *“God made certain people to play football. He was one of them.” – Joe Gibbs*

06-08-2007, 07:29 PM	#12
dmek25 MVP Join Date: Oct 2005 Location: lancaster,pa Age: 63 Posts: 10,672	Re: Home Equity Loan Closing Costs pre paid finance charges other then the daily interest rate are usually waived. shop around.closing costs on a second mortgage including the appraisal is usually only around $500.00- $600.00 tops. __________________ "It's better to be quiet and thought a fool than to open ones mouth and remove all doubt." courtesy of 53fan

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Home Equity Loan Closing Costs

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