HELOC Closing Costs: What You’ll Actually Pay
HELOCs have much lower closing costs than refinancing, but they’re not zero. Here’s what to expect.
Typical HELOC Closing Costs: $500-$1,500
Required Costs
| Fee | Range | What It Covers |
|---|---|---|
| Appraisal | $300-$600 | Property value verification |
| Credit Report | $15-$50 | Credit check |
| Title Search | $150-$400 | Verify no other liens |
| Recording Fees | $50-$200 | County recording |
| Subtotal | $515-$1,250 |
Optional/Lender-Dependent
| Fee | Range | Notes |
|---|---|---|
| Origination Fee | $0-$500 | Some lenders waive |
| Title Insurance | $0-$500 | Optional for HELOCs |
| Points | $0-$1,000 | Rare for HELOCs |
| Annual Fee | $0-$100 | Some lenders charge |
How This Compares to Refinance
| Loan Type | Typical Closing Costs |
|---|---|
| HELOC | $500-$1,500 |
| Home Equity Loan | $500-$2,000 |
| Cash-Out Refinance | $8,000-$20,000 |
HELOC closing costs are 85-95% lower!
Can You Avoid HELOC Closing Costs?
Some lenders offer no-closing-cost HELOCs:
- True no-cost: Lender pays all fees
- May have slightly higher rate
- Or minimum draw requirement ($10k-$25k)
Trade-off: Higher rate vs. upfront cost
- No-cost HELOC at 9% vs. $750-cost HELOC at 8.5%
- On $50k: $250/year extra vs. $750 one-time
- Break-even: 3 years
Our Calculator Assumes
We use ~$750 as typical HELOC closing costs. Adjust in the calculator if your lender quotes differently.
Tips to Minimize HELOC Costs
- Shop multiple lenders - Fees vary by $500+
- Ask about fee waivers - Some lenders waive appraisal/origination
- Negotiate - Especially for larger lines
- Consider no-closing-cost option - If borrowing short-term
- Check for annual fees - Avoid if possible
Lender-Specific Fee Structures
| Lender Type | Typical Fees |
|---|---|
| Big Banks | $500-$1,200 |
| Credit Unions | $200-$800 (often lower) |
| Online Lenders | $0-$500 (competitive) |
| Broker | Varies widely |
Timing of Fee Payment
HELOC closing costs:
- Paid at closing (like refinance)
- OR deducted from initial draw
- OR added to balance (less common)
Confirm with your lender how fees are handled.
Tax Deductibility
HELOC closing costs are not tax-deductible (unlike mortgage points on refinance).
However, HELOC interest is deductible if funds are used for home improvement.