• Home equity lines of credit differ by lender. Differences in closing costs, interest rates and other fees and charges are the items to look at when deciding which lender's offer you take.


    Fees can include an appraisal, title search, application fees, points, taxes, filing fees and membership fees. Some lenders charge transaction fees whenever you draw on the line.


    HELOC generally are variable-rate loans. They are usually tied to an index such as the prime rate or the U.S. Treasury Bill rate. These rates fluctuate and your interest rate fluctuates with them.


    Some plans have a minimum payment that is interest-only, meaning you only make payments on the interest. At the end of the term, you must pay the principal in full.

    Other Conditions

    Some HELOC agreements prohibit renting your home. Take this into consideration if you had planned to rent it.


    Ensure that the HELOC does not penalize you should you repay it before the term is up.


    FRB: Home equity Lines of Credit

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