Quote:
Originally Posted by dpg
$600 fee just to pay a loan early???  |
The bank does a substantial amount of paperwork to qualify you for a HELOC, including an appraisal, which is sometimes only a drive-by to confirm the property is there. Often, they will pay local realtors to do the rough exterior appraisal. They also have the expense of the closing and placing a lien on your deed.
The early closing fee assures the bank that they will, at a minimum, recoup their investment in your loan. If you keep the loan long enough the interest you pay takes care of that.