Typical closing cost percentage on HELOC

Los Angeles County, California
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Typical closing cost percentage on HELOC

Jamie KleinePro Member
Architect · Los Angeles, CA · Member since 2023 · 5 posts · 1 vote

Hey finance savvy people! We are setting ourselves up with a HELOC to start investing. Looks like the closing cost fees are about 3% of the credit line amount. Does that seem typical for a HELOC of about $200k - so the fees are about $6k? Thanks so much for your help, really appreciate it!

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Chris Watkins
Lender · Eugene, OR · Member since 2021 · 245 posts · 154 votes
3y
Quote from @Jamie Kleine:

Ooo yeah that's a lot better. Thanks again for sharing @JD Martin! Really appreciate it.


 It depends on the loan amount. For most lenders, there is a threshold above which they require a full appraisal and other documentation which drive up the cost. Below that they'll often do a desk appraisal to cut down on cost and headache. 

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  • JD MartinBusiness Member
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    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    3y
    Quote from @Jamie Kleine:

    Hey finance savvy people! We are setting ourselves up with a HELOC to start investing. Looks like the closing cost fees are about 3% of the credit line amount. Does that seem typical for a HELOC of about $200k - so the fees are about $6k? Thanks so much for your help, really appreciate it!


     Last time I got one I paid less than $1k, which mostly entailed an appraisal and recording costs. 

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  • Jamie KleinePro Member
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    Architect · Los Angeles, CA · Member since 2023 · 5 posts · 1 vote
    3y

    Thanks @JD Martin! If you don't mind sharing, about what percentage of the credit amount was that?

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  • JD MartinBusiness Member
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    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    3y
    Quote from @Jamie Kleine:

    Thanks @JD Martin! If you don't mind sharing, about what percentage of the credit amount was that?


     $85k.

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  • Jamie KleinePro Member
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    Architect · Los Angeles, CA · Member since 2023 · 5 posts · 1 vote
    3y

    Ooo yeah that's a lot better. Thanks again for sharing @JD Martin! Really appreciate it.

    1Reply
  • Chris Watkins
    Lender · Eugene, OR · Member since 2021 · 245 posts · 154 votes
    3y
    Quote from @Jamie Kleine:

    Ooo yeah that's a lot better. Thanks again for sharing @JD Martin! Really appreciate it.


     It depends on the loan amount. For most lenders, there is a threshold above which they require a full appraisal and other documentation which drive up the cost. Below that they'll often do a desk appraisal to cut down on cost and headache. 

    1Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    3y
    Quote from @Chris Watkins:
    Quote from @Jamie Kleine:

    Ooo yeah that's a lot better. Thanks again for sharing @JD Martin! Really appreciate it.


     It depends on the loan amount. For most lenders, there is a threshold above which they require a full appraisal and other documentation which drive up the cost. Below that they'll often do a desk appraisal to cut down on cost and headache. 


     Good point. I had a long term relationship with my bank and my appraisal was about half the typical cost. 

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  • Ty Cover
    Member since 2020 · 14 posts · 5 votes
    3y
    Quote from @Jamie Kleine:

    Hey finance savvy people! We are setting ourselves up with a HELOC to start investing. Looks like the closing cost fees are about 3% of the credit line amount. Does that seem typical for a HELOC of about $200k - so the fees are about $6k? Thanks so much for your help, really appreciate it!

    I’m signing for a $225k heloc on Monday. Closing costs are around 2k and i paid $500 for an appraisal. 

    Navy Federal loans 95% of appraisal instead of the 80% I’ve seen at other banks. That additional 15% was worth over $100,000 more. 
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  • Jamie KleinePro Member
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    Architect · Los Angeles, CA · Member since 2023 · 5 posts · 1 vote
    3y

    Cool, thanks @Ty Cover! Do you have to be a veteran to get a loan through them?

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  • Sam YinPro Member
    Los Angeles, CA · Member since 2021 · 584 posts · 738 votes
    3y

    @Jamie Kleine

    I did one for $250k about 1 year ago. Cost about $350... which was the cost of internet appraisal. I went to open an account and put $100 in just to become a member of that credit union.

    Based on my research, most banks/credit unions charge a small fee of $400 to $800. That's it. They make money when you use it.

    I would keep shopping around, unless you just want the speed and convenience and you got something already lined up.

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  • Ty Cover
    Member since 2020 · 14 posts · 5 votes
    3y
    Quote from @Sam Yin:

    @Jamie Kleine

    I did one for $250k about 1 year ago. Cost about $350... which was the cost of internet appraisal. I went to open an account and put $100 in just to become a member of that credit union.

    Based on my research, most banks/credit unions charge a small fee of $400 to $800. That's it. They make money when you use it.

    I would keep shopping around, unless you just want the speed and convenience and you got something already lined up.


     It has taken weeks to get to this stage. The underwriters were a month alone. $350 would be better, but I’m ready to get started. 

    Thanks for the information. 

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  • Ty Cover
    Member since 2020 · 14 posts · 5 votes
    3y
    Quote from @Jamie Kleine:

    Cool, thanks @Ty Cover! Do you have to be a veteran to get a loan through them?


     You can be related to a veteran to open an account. 

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