Lender HELOC Closing Fees?

Question

What are you guys seeing for closing fees with your local Credit Union. I found a lender that does 80% LTV on investment property.  I recently applied and their closing fees were $3K for a $170K loan at 5.24% HELOC. I do have an excellent credit w/ low DTI. Is the $3K (rolled into loan) high? What are you guys seeing for closing costs? Thanks in advance

Kyle J. · Answer

Then yes, those fees are very high.

I have my HELOC's through Union Bank and Wells Fargo.  Both of mine are also on investment properties, though at lower LTV's than the 80% you're looking at.

Have you looked at PenFed?  I have no idea what they charge for closing costs, but I know they also do HELOC's on investment properties up to 80% LTV.  Either way, I'd suggest shopping around because $3k is a lot to pay and considerably higher than what most other HELOC lenders charge.

Michael Augustin · Answer

@Kyle J. @Kerry Baird

Thanks for replying.  Yes it is for a HELOC and not a loan. I thought it was pretty high and expected around 1%.  Which bank are you using for a HELOC.

Kyle J. · Answer

@Michael Augustin Are you sure those closing costs are for a HELOC and not a HEL?

You mention "loan" and "HELOC" so it's a little unclear if you're talking about a HEL (which is a Home Equity Loan) or a HELOC (which is a Line of Credit).  But if you are talking about a HELOC as you said, $3k in closing costs is crazy expensive.

I have two HELOC's and one had absolutely zero closing costs, and for the other all I had to pay for was the appraisal ($350).

Kerry Baird · Answer

That's high, but the LTV is also high.  Might be a trade off for risk to the lender.