Heloc application process

[Harrison Taylor]

I'm applying for a HELOC on my primary home. Theyre charging me $550 for the appraisal up front. Then if the loan is approved following a title search, $5,000 will be charged to open the account. Is this normal? This is my first time applying for a HELOC.

[Stanley Yeldell]

Harrison, that seems pretty steep for a HELOC. Typically, HELOC fees can vary based on the lender and the size of the line of credit, but $5,000 just to open the account is on the high end. Here's what to consider:

Appraisal Fee: $550 is fairly standard, but some lenders waive it or roll it into the closing costs, especially for primary residences.

Account Opening Fee: $5,000 is significantly higher than average. Many lenders charge 1-2% of the credit limit or a flat fee, but $5k suggests either a very large HELOC or some less common fee structure.

Shop Around: It’s worth comparing offers from other lenders or credit unions. Some waive fees or offer promotional rates for the first year.

Negotiation: Ask for a detailed breakdown of that $5,000. Is it for points, origination fees, or something else? Sometimes lenders will negotiate or waive certain fees, especially if you have a strong credit profile or existing relationship with them.

Have you received other quotes, or is this the first lender you approached? Would you like some suggestions on other lenders to check with?