An Overview of Home Equity Fees

Learn about common fees for home equity loans so you can be a savvy borrower

Home equity loan fees vary from lender to lender. Some charge them while others don't. If you are shopping around for a home equity loan or line of credit, be sure to investigate fees you'd be required to pay. In general, they're similar to the fees and costs you paid when you got your mortgage. Learn more about some of the home loan fees you may encounter for both home equity loans and home equity lines of credit.

Typical home equity fees

If a lender charges fees for home loans, these are some of the typical fees you may need to pay:

  • Home appraisal fee: This may be the same as the appraisal fee you paid when you got your mortgage, or it may be less if the lender opts for a 'computer appraisal.' This offers a quicker appraisal process and is based just on looking at comparable homes' data in your neighborhood instead of also including a visit to your home.
  • Application fee: This fee would cover the processing of your loan application, including research into your credit score and financial situation.
  • Title fees: These will cover the title search as well as title insurance and other related processing expenses.
  • Attorney fees: If you need an attorney to review the application and associated documents, you can expect to pay a fee for this service.
  • Document preparation fees: Similar to your mortgage fees, these will be assessed to cover the costs of pulling together all necessary documentation and arranging for you to sign it.
  • Monthly or maintenance fees: Unlike your mortgage, you may find home equity loan fees that are charged on a monthly or annual basis. These fees are more similar to bank account maintenance fees. Not all lenders have them, so be sure to ask.

Fees for home loans versus lines of credit

In addition to inquiring about the presence of certain fees, you should also ask whether the fees vary depending on whether you apply for a home equity loan or a home equity line of credit. Because a home equity loan is a lump sum, it may be subject to fewer fees than a home equity line of credit, which is reusable. Some lenders charge an annual fee on home equity lines of credit but not on home equity loans. You may also encounter transaction fees each time you access your line of credit. Finally, look into possible fees that may be charged if you pay off your loan or line of credit within a certain period of time. In short, make sure you know what you're getting before you sign on the dotted line.

All of these home loan fees add up and should be factored into your decision to apply for a home equity loan or line of credit.

Enjoy no application fees and typically no closing costs with a Citizens Bank home equity product

Citizens Bank doesn't charge application fees and typically does not charge closing costs on our home equity loans and lines, making them a smart choice for your borrowing needs. If you're still not sure which option is right for you, you can compare home equity loans. If you're ready to move forward with a home equity line of credit, you can apply online.

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†A trust review fee ranging from $75 to $100, as well as recording fees ranging from $10 to $175, may apply for properties held in trust.

 

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