Home equity closing costs: $0 to $18,000 to borrow the same $60,000

8 min read · LenderMatch Learn

Closing costs on home equity borrowing run from nothing to many thousands of dollars, depending on the product. Many HELOC lenders pay some or all of the up-front costs, usually on the condition that you keep the line open for a few years. A home equity loan typically has closing costs that it must itemize on a Loan Estimate. A cash-out refinance costs the most: Freddie Mac puts refinance costs at 3% to 6% of the whole new loan.

Below: each fee, the same $60,000 borrowed three ways, and the catches in “no closing cost” offers. Fees vary by lender as much as rates do, so getting offers from several lenders is the most direct way to see your real number.

How much are closing costs on a HELOC?

The CFPB says some lenders waive some or all of the up-front costs for a HELOC, and others charge fees. The ones it lists:

• An appraisal fee for a formal estimate of your home’s value.
• An application fee, which might not be refunded if you are turned down.
• Closing costs, including fees for attorneys, title search, mortgage preparation and filing, property and title insurance, and taxes.

Two published examples show the range. A large national bank says it pays all closing costs on lines up to $500,000, and that the third-party fees involved generally total between $453.35 for a $25,000 line and $14,071.35 for a $500,000 line. A large regional bank’s disclosure lists third-party fees (credit report, flood check, valuation, property search, recording and attorney review) of $134.35 to $2,667.80 in California. It pays those for you if you keep the account open three years, but it also charges its own origination fee: $299 on lines under $150,000 and up to $599 on larger ones, plus a $75 annual fee during the draw period.

A HELOC does not come with a Loan Estimate or Closing Disclosure. You get Truth in Lending disclosures instead. Under Regulation Z, the lender’s early disclosure must itemize the fees it charges to open, use or maintain the line and give a good faith estimate of third-party fees, as one amount or a range, with an itemization on request.

Do home equity loans have closing costs?

Usually. The CFPB says home equity loans may have upfront fees and costs, so compare more than the monthly payment. The amount varies by lender.

Because it is a closed-end loan secured by your home, Regulation Z requires a Loan Estimate within three business days after the lender receives your application, and the CFPB says you must get a Closing Disclosure at least three business days before closing. Both are standard forms, so two lenders’ fees line up side by side. For the difference between a loan and a line, see HELOC vs home equity loan.

Cash-out refinance closing costs

Freddie Mac says you can expect to spend 3% to 6% of the loan principal to refinance, set by your lender, your credit score and your location. Its list of typical charges: government recording costs, appraisal, credit report, lender origination, title services, tax service, survey, attorney and underwriting fees. Discount points, if you buy your rate down, are an extra cost paid up front.

The key detail: the percentage applies to the whole new loan, including the part that pays off your current mortgage. The CFPB’s HELOC booklet notes that closing costs on a cash-out refinance are generally higher than on a HELOC, and that the new rate may be higher than your current one.

Worked example: the same $60,000, three ways

Say your home is worth $400,000, you owe $240,000 on a low-rate mortgage, and you want $60,000 for a project.

Calculated by LenderMatch from the sources above. Illustrations, not quotes.

Measured against the $60,000 you actually wanted, the refinance’s costs come to 15% to 30% of the cash. It also resets your $240,000 balance at today’s rate; Freddie Mac’s 30-year average was 7.40% for the week of October 15, 2026. A refinance can still win when your current rate is close to today’s, which cash-out refinance vs HELOC works through. The cash-out refinance calculator runs your numbers.

How do “no closing cost” HELOCs work?

The lender pays the third-party fees at closing and gets the money back in other ways if you leave early. The catches to ask about:

• An early closure fee. The large national bank above charges, if you close the line within 36 months, a $450 base fee plus any mortgage and government taxes, recording fees, and closing agent or attorney fees it paid for you.
• Full reimbursement. The regional bank above pays third-party fees only if you agree to repay the full amount if you close the account within three years.
• Fees that still apply. Origination fees, annual fees and minimum-draw rules are separate from the waived costs.
• Selling or refinancing early. The CFPB says you generally must pay off a HELOC in full when you sell. If you may move or refinance within the window, closing the line then can trigger the fee.

Paying the balance down to $0 is not the same as closing the account. If you simply want to be debt-free early, you can usually leave the line open at a zero balance until the window passes, as long as you are fine with any annual fee.

Regulation Z requires the early disclosure to say that a fee may be charged when the line is terminated, but not the amount. Ask for the dollar figure and the time window in writing. In Texas, the national bank’s terms say its early closure fee is not allowed on homestead lines made under the state constitution’s home equity rules; see the Texas HELOC guide.

No closing cost cash-out refinance: where the cost goes

The CFPB says a loan advertised with no closing costs works one of two ways: a higher interest rate paired with a credit that covers the cost of making the loan, or the closing costs added to your loan amount. Freddie Mac is blunter: “there is no such thing as a free loan.”

In the example above, adding $9,000 of costs to a 30-year loan at 7.40% raises the payment by about $62 a month and adds about $13,400 of interest over 30 years. Adding $18,000 raises it by about $125 a month. To judge whether a refinance pays for itself, see when refinancing makes sense.

HELOC fees after closing

Closing costs are only the start. The CFPB’s HELOC shopping checklist also asks about annual fees, transaction fees, inactivity fees, prepayment and other penalty fees, and early termination fees. The regional bank above, for example, charges $100 each time you move a balance into or out of a fixed-rate portion of the line.

State taxes can add to the bill

Some states tax the mortgage itself. The regional bank’s disclosure adds $5.50 per $1,000 of the credit limit in Florida, which is $330 on a $60,000 line, and recordation taxes of $3.00 per $1,000 in Georgia, which is $180. See the Florida and Georgia HELOC guides for each state’s rules.

How to compare closing costs between lenders

• For a loan or refinance, compare the Loan Estimates’ closing cost totals and the rate on the same day.
• For a HELOC, ask each lender for the itemized third-party fees, its own fees, the annual fee, and the early closure fee’s amount and window. Then weigh those against the margin. Our guide to how lender matching works has a worked example: an offer with $1,200 in closing costs, a 0.50-point lower margin and no annual fee takes about 3.7 years to earn back against a no-closing-cost offer.
• Watch the timing rules. Regulation Z bars a nonrefundable HELOC application fee until three business days after you receive the disclosures. If a disclosed term changes before the line opens, other than the rate moving with its index, you can walk away and get all fees back.
• Know your right to cancel. For a home equity loan or refinance secured by your main home, Regulation Z generally gives you until midnight of the third business day after closing to cancel; a refinance with your current lender can be canceled only for the new money above your old balance. For a HELOC, the CFPB says you can cancel in writing within the first three days after the account is opened, and the lender must return the fees you paid, including application and appraisal fees.

Frequently asked questions

How much are closing costs on a HELOC?

It depends on the lender and the state. The CFPB says some lenders waive some or all up-front HELOC costs, while others charge appraisal, application and closing fees. One large regional bank publishes third-party fees of about $134 to $2,668 in California, which it pays if you keep the line open three years.

Do home equity loans have closing costs?

Usually, though the amount varies by lender. The CFPB says home equity loans may have upfront fees and costs. The lender must itemize them on a Loan Estimate and a Closing Disclosure.

Is there a HELOC with no closing costs?

Yes, many lenders pay some or all of the closing costs on a HELOC. The usual condition is that you keep the line open for a set time, often three years. Close it sooner and you may owe an early closure fee or have to repay the costs the lender covered.

What is a HELOC early closure fee?

A charge for closing the line within a set period after opening it. One large national bank charges a $450 base fee plus taxes, recording fees and the closing agent or attorney fees it paid, if you close within 36 months. Paying the balance to $0 is not the same as closing the account.

Are HELOC closing costs tax deductible?

Mostly no. IRS Publication 936 says points on a home equity loan or line are not deductible if the money is not used to buy, build or improve your home. Points on a refinance are generally deducted over the life of the loan, with an exception for the part used to substantially improve your main home.

Can you roll closing costs into a cash-out refinance?

Often, yes. The CFPB says a loan advertised as having no closing costs either charges a higher interest rate with a lender credit, or adds the costs to your loan amount. Adding them raises your payment and reduces your equity, and you pay interest on them for the life of the loan.

Compare closing costs and rates from several lenders →