HELOC Closing Costs Breakdown: What You'll Actually Pay in 2026

HELOC closing costs range from $0 to $5,000 depending on your lender, location, and credit line amount. Some lenders advertise "no closing costs" while others charge full fees upfront. Here's exactly what you'll pay and where you can save money.

Total Cost Ranges by HELOC Size

$50,000-$75,000 HELOC:

• Low-cost lender: $200-$800
• Average lender: $1,000-$2,000
• High-cost lender: $2,000-$3,000

$100,000-$150,000 HELOC:

• Low-cost lender: $500-$1,200
• Average lender: $1,500-$3,000
• High-cost lender: $3,000-$4,500

$200,000+ HELOC:

• Low-cost lender: $800-$1,500
• Average lender: $2,000-$4,000
• High-cost lender: $4,000-$6,000

The wide ranges reflect different lender approaches and regional cost variations. Your actual costs depend on specific fees below.

Appraisal Fee: $0-$600

The appraisal determines your home's value and your maximum credit line.

Desktop appraisal: $75-$200 Used for smaller HELOCs (under $250,000) in markets with abundant comparable sales data. The appraiser evaluates your home using public records, tax data, and recent sales without visiting the property.

Exterior appraisal: $200-$350 The appraiser drives by, photographs the exterior, measures the structure, and combines this with comparable sales data. Common for mid-sized HELOCs.

Full interior appraisal: $400-$600 An appraiser spends 30-60 minutes inside your home, measuring rooms, taking photos, and noting condition. Required for larger HELOCs (over $400,000), unique properties, or when the lender wants maximum accuracy.

Who pays: You pay this fee regardless of whether the HELOC closes. Most lenders collect it upfront or at closing.

Negotiability: None. Appraisers set their fees based on property type and market. However, some lenders absorb this cost as part of "no closing cost" promotions.

Application Fee: $0-$100

Some lenders charge an upfront fee to process your application. This covers credit report pulls and initial processing.

Typical range: $0-$100, with $50 being common when charged.

Who pays: You pay this when submitting your application, before approval.

Negotiability: High. Many lenders waive this fee, especially for customers with strong credit or existing relationships. If a lender charges an application fee, ask them to waive it—they often will.

Red flag: Application fees over $100 or any lender that charges this fee plus high closing costs. Shop around.

Credit Report Fee: $0-$50

Lenders pull your credit report from one or more credit bureaus to evaluate your creditworthiness.

Typical range: $25-$50 if charged separately. Many lenders include this in other fees or absorb it entirely.

Who pays: You, either as a separate line item or rolled into the application fee.

Negotiability: Medium. Some lenders waive this for strong credit applicants or existing customers.

Flood Certification Fee: $15-$25

Lenders must verify whether your property is in a FEMA flood zone. This requires a flood zone determination.

Typical cost: $15-$25

Who pays: You, at closing.

Negotiability: None. This is a required third-party fee for all mortgages and HELOCs.

Impact: If your property is in a flood zone, you'll need flood insurance, adding $400-$2,000+ annually to your costs. This doesn't affect closing costs but impacts ongoing expenses.

Title Search Fee: $75-$200

A title company or attorney searches public records to verify you own the property and no liens, judgments, or claims exist against it.

Typical range: $75-$200 depending on location and property complexity.

Who pays: You, at closing.

Negotiability: Low. Title companies set these fees based on standard rates in your area. In some states (like Texas and New Mexico), title insurance rates are regulated.

Why it matters: Title searches uncover issues that could prevent the HELOC from closing—outstanding liens, unpaid property taxes, judgment liens, or ownership disputes. Resolving these adds time and sometimes cost to your closing.

Title Insurance: $0-$500

Lenders require lender's title insurance to protect their interest in your property. This is different from owner's title insurance (which protects you).

Typical cost: $150-$500 depending on your HELOC amount and location.

Calculation: Usually based on your total loan amount (mortgage + HELOC). Some states regulate title insurance rates; others allow competition.

Who pays: You, at closing.

Negotiability: Low in regulated states, medium in unregulated states. You can shop for title companies in many states, which can save $50-$200.

Reissue credit: If you recently refinanced or bought your home (within 1-3 years depending on state), you may qualify for a reissue credit that reduces title insurance costs by 20-50%. Ask about this—title companies don't always volunteer the information.

Recording Fee: $50-$250

The county recorder's office charges to file your HELOC lien as a public record. This establishes the lender's legal claim to your property.

Typical range: $50-$125 in most counties, up to $250 in high-cost areas like California.

Factors affecting cost:

• Number of pages in your HELOC document (some counties charge per page)
• County fee schedules (vary significantly by location)
• Transfer taxes in some jurisdictions

Who pays: You, at closing.

Negotiability: None. These are government fees set by county ordinances.

Attorney or Settlement Fees: $0-$800

Some states require attorney involvement in real estate closings (attorney states). Others use title companies or settlement companies (escrow states).

Attorney states (typical cost $400-$800):

• Connecticut, Delaware, Georgia, Massachusetts, New York, North Carolina, Rhode Island, South Carolina, West Virginia

Escrow/title states (typical cost $200-$500):

• Most other states, with title company or escrow company handling closing

Who pays: You, at closing.

Negotiability: Medium. You can shop for attorneys or settlement companies in most states. Fees vary significantly—$400 vs. $800 for the same service is common.

What's included: Document preparation, review of closing documents, conducting the closing, ensuring proper recording, and disbursing funds.

Courier and Administrative Fees: $0-$100

Some lenders charge for delivering documents, overnight shipping, or administrative processing.

Typical range: $25-$75 if charged.

Who pays: You, at closing.

Negotiability: High. These fees are often unnecessary and added by lenders to increase revenue. Ask to have them removed—many lenders will waive them if questioned.

Junk fees to watch for:

• "Document preparation fee" for documents the lender creates anyway
• "Processing fee" in addition to application or origination fees
• "Administrative fee" with no specific service attached

If you see multiple small fees adding up to $200-$300, push back. These are often negotiable or removable.

Origination or Underwriting Fee: $0-$500

Some lenders charge for processing and underwriting your HELOC.

Typical range: $0-$500, with $300 being common when charged.

Who pays: You, at closing.

Negotiability: High. Many lenders waive this fee entirely, especially for borrowers with strong credit or to match competitor offers.

When to negotiate: If your credit score is 720+ and you have substantial equity, ask for this fee to be waived. Lenders often remove it to win your business.

Annual Fee: $0-$100 Per Year

Some HELOCs charge an annual maintenance fee for keeping the credit line open.

Typical range: $50-$100 per year, though many lenders charge $0.

When charged: Usually appears on your account anniversary.

Waivers: Many lenders waive the annual fee if you:

• Maintain a minimum balance ($5,000-$10,000 is common)
• Keep the line open for a certain period (2-5 years)
• Have a linked checking account with the lender

Negotiability: Medium. Ask about annual fees before closing and inquire about waiver conditions.

Long-term cost: A $75 annual fee over 10 years costs $750—more than many closing cost packages. Factor this into your total cost analysis.

Early Termination or Prepayment Penalty: Potential 2-3% of Credit Line

Some lenders charge a penalty if you close the HELOC within a certain timeframe, usually 2-3 years.

Typical penalty: 2-3% of your credit line, or a flat fee of $300-$500.

Example: If you have a $100,000 HELOC with a 3% early termination fee and close it after 18 months, you pay $3,000.

Who pays: You, if you close early.

Negotiability: Low. This is part of the HELOC agreement. However, you can avoid HELOCs with these penalties by choosing lenders that don't charge them.

Why lenders charge it: To recoup closing costs they paid on your behalf, especially if they advertised "no closing costs."

How to avoid: Read your HELOC agreement carefully. If there's an early termination penalty and you think you might pay off or close the line within 2-3 years, factor this into your cost comparison or choose a different lender.

"No Closing Cost" HELOCs: What's the Catch?

Many lenders advertise no closing costs. They're not lying, but they recover costs in other ways:

Higher Interest Rate

The most common trade-off. The lender charges 0.25-0.5% more on your interest rate to cover closing costs.

Example:

• Standard rate: Prime + 0.5% (8% with Prime at 7.5%)
• No closing cost rate: Prime + 1% (8.5% with Prime at 7.5%)

On a $100,000 HELOC, 0.5% extra costs $500 per year. If you would have paid $2,000 in closing costs, you break even after 4 years.

When it makes sense:

• You plan to pay off the HELOC within 3-4 years
• You don't have cash for upfront closing costs
• You're uncertain about long-term use of the line

When to avoid:

• You plan to keep the HELOC for 5+ years
• You can easily afford closing costs
• You'll carry a significant balance for an extended period

Early Closure Penalties

The lender waives closing costs but charges a penalty (usually $300-$500 or 2-3% of the credit line) if you close within 2-3 years.

This works if you plan to keep the HELOC long-term. It's problematic if:

• You might refinance your mortgage soon (many mortgages require closing the HELOC)
• You're using the HELOC for a one-time project and plan to close it after
• You might sell your home within 2-3 years

Annual Fees

Some no-closing-cost HELOCs charge annual fees ($50-$100) that traditional HELOCs don't charge.

Over 10 years, a $75 annual fee costs $750—as much or more than closing costs would have been. Calculate the total cost over your expected holding period.

State and Regional Variations

Closing costs vary significantly by state due to different regulations, title insurance requirements, and recording fees.

Low-cost states (typical total: $800-$2,000):

• Texas (regulated title insurance, competitive market)
• Missouri, Indiana, Ohio (lower recording fees, competitive markets)

Moderate-cost states (typical total: $1,500-$3,000):

• Florida, Georgia, North Carolina (moderate fees across the board)
• Most Midwestern states

High-cost states (typical total: $2,500-$5,000):

• New York (attorney required, high recording fees)
• California (high recording fees, expensive title insurance)
• Massachusetts, Connecticut (attorney required, higher fees)

Your location has as much impact on costs as your lender choice.

How to Reduce HELOC Closing Costs

Shop Multiple Lenders

Get detailed fee breakdowns from at least 3-5 lenders. Costs vary by $1,000-$3,000 between lenders for the same credit line amount.

Ask for a Loan Estimate or detailed fee worksheet. Compare these line-by-line, not just the total cost.

Negotiate Junk Fees

Challenge fees that seem excessive or vague:

• "Administrative fees" over $50
• "Document preparation" fees
• Multiple small courier or processing fees

Ask the lender to justify or remove these. Many will.

Ask About Relationship Discounts

If you have checking, savings, or investment accounts with a bank, ask about discounts. Many banks waive fees for existing customers.

Common discounts:

• Waived application fee
• Reduced or waived origination fee
• Lower interest rate (0.25-0.5% discount)

Shop for Title Insurance

In most states, you can choose your title company. Get quotes from 2-3 companies. Prices can vary $100-$300 for the same service.

Ask about reissue credits if you recently refinanced or purchased your home.

Consider Timing

If you don't need funds immediately, you might wait for promotional periods when lenders offer reduced fees or special rates.

Some lenders run promotions with waived application fees, discounted origination fees, or rate discounts during specific months.

Bundle if Refinancing

If you're considering a mortgage refinance, explore a cash-out refinance instead of a separate HELOC. While refinance closing costs are higher ($3,000-$6,000), you avoid having two sets of closing costs and might get a better overall rate structure.

This makes sense if you need access to significant equity ($50,000+) and rates are favorable.

Calculating True Cost: Upfront vs. Ongoing

Don't just compare closing costs—calculate total cost over your expected holding period.

Example comparison:

Option A: Traditional HELOC

• Closing costs: $2,000
• Interest rate: Prime + 0.5% (8%)
• Annual fee: $0
• Early termination penalty: None

Option B: No Closing Cost HELOC

• Closing costs: $0
• Interest rate: Prime + 1% (8.5%)
• Annual fee: $75
• Early termination penalty: $500 if closed within 3 years

Scenario 1: $100,000 balance for 5 years

Option A total cost:

• Closing: $2,000
• Interest over 5 years: ~$40,000
• Annual fees: $0
• Total: $42,000

Option B total cost:

• Closing: $0
• Interest over 5 years: ~$42,500
• Annual fees: $375
• Total: $42,875

Option A saves $875 over 5 years.

Scenario 2: $100,000 balance for 2 years, then close

Option A total cost:

• Closing: $2,000
• Interest over 2 years: ~$16,000
• Annual fees: $0
• Total: $18,000

Option B total cost:

• Closing: $0
• Interest over 2 years: ~$17,000
• Annual fees: $150
• Early termination: $500
• Total: $17,650

Option B saves $350 over 2 years.

Run these calculations with your specific numbers, expected balance, and timeframe to determine the best option.

When Closing Costs Get Refunded

Most closing costs are non-refundable, even if your HELOC doesn't close. However:

Appraisal fees: Non-refundable once ordered. You paid for a service (the appraisal) and received it.

Application fees: Sometimes refundable if the lender denies your application due to their error. Usually non-refundable if you choose not to proceed or don't qualify.

Title and recording fees: Refundable if paid but closing doesn't occur. These services weren't performed, so the fees shouldn't be collected.

Attorney fees: Partially refundable if closing doesn't occur, depending on services rendered.

If your HELOC doesn't close, review your closing cost itemization and request refunds for services not performed.

Red Flags: When Costs Are Too High

Total costs over $5,000 for a standard HELOC on a single-family home in a moderate-cost state warrants scrutiny. Review each fee and compare with other lenders.

Application fees over $100 are excessive. Most lenders charge $0-$50 or waive them entirely.

Origination fees over 1% of your credit line amount. A $100,000 HELOC with a $1,500 origination fee (1.5%) is high. Shop around.

Multiple small administrative fees totaling $300-$500. These are often negotiable or unnecessary.

Attorney fees over $1,000 in non-attorney states. If you're in an escrow state and the lender charges $1,000+ for attorney fees, question why an attorney is needed.

Bottom Line

HELOC closing costs vary widely based on lender, location, and credit line amount. The difference between a low-cost and high-cost lender can be $2,000-$3,000 for the same HELOC.

Shop at least 3-5 lenders, get detailed fee breakdowns, and negotiate junk fees. Factor in annual fees, interest rates, and potential early termination penalties to calculate true cost over your expected holding period.

Sometimes paying $2,000 in closing costs upfront saves money over paying higher interest rates for years. Other times, no-closing-cost options make sense if you need short-term access to equity.

Do the math based on your situation. The lowest closing costs don't always mean the lowest total cost.