HELOC Closing Costs and Fees: What Lenders Charge and When
A HELOC can cost money before you draw a dollar: appraisal, title and recording fees to open it, an annual fee to keep it, and sometimes a fee or a cost recapture if you close it early. Many lenders advertise no closing costs, but that rarely means no fees: U.S. Bank, for example, pairs no closing costs with an early-closure fee of 1% of the line (up to $500) within 30 months and a $75 annual fee, and Axos, which pays up to $750 of closing costs, charges a $750 early-closure fee plus the taxes and closing agent or attorney fees it paid if the line closes within 36 months. This page lists the fees the CFPB says lenders can charge, shows four lenders' published fee terms side by side, and works through what each structure costs if you keep the line for two years or five. A HELOC is secured by your home; the CFPB warns that "if you fall behind or can't repay the loan on schedule, you could lose your home."
Key takeaways
- The CFPB lists six kinds of HELOC fees: application, origination and closing costs (appraisal, title and others), inactivity, annual or membership, cancellation, and conversion to a fixed rate.
- "No closing costs" often comes with a condition: close the line within 30 to 36 months and you pay a fee or repay the costs the lender covered.
- Annual fees add up over a 10-year draw period. A $75 fee charged every year after the first is $675 over 10 years.
- Compare fee schedules over the time you expect to keep the line, not only at closing.
- If the home is your principal dwelling and you cancel within the three-business-day rescission period, the lender must refund the fees you paid to open the account, per the CFPB.
This page is part of our guide to home equity loans, HELOCs and refinancing.
What fees can a HELOC lender charge?
| Fee | When it is charged | What the CFPB says |
|---|---|---|
| Application fee | When you apply | "might not be refunded if you are turned down" (CFPB brochure) |
| Appraisal | Before closing | "a formal estimate of the value of your home" |
| Origination and closing costs | At closing | "fees for attorneys, title search, mortgage preparation and filing, property and title insurance, and taxes" |
| Points | At closing | Up-front charges, "one point equals 1 percent of the credit limit" (CFPB booklet) |
| Annual or membership fee | Each year the line is open | Charged "regardless of whether or not the product is used" (CFPB booklet glossary) |
| Inactivity fee | If you do not use the line | Listed by the CFPB as "a fee for not using your HELOC" |
| Transaction fee | Each draw, under some plans | "a transaction fee every time you draw on the credit line" (CFPB booklet) |
| Cancellation or early closure fee | If you close the line early | "usually within the first two or three years" (CFPB) |
| Conversion fee | When you lock part of the balance at a fixed rate | "a fee for converting a portion of your balance to a fixed interest rate" (CFPB) |
Regulation Z requires the lender to disclose, before you open the plan, the fees it imposes to open, use or maintain the line (12 CFR 1026.40). Ask for that disclosure from every lender you compare.
What do lenders actually publish?
Each lender below publishes its own HELOC fee terms. These are quoted as fee structures to compare, not offers, and they were read on October 26, 2026, except Bank of America's early-closure line, last read October 1, 2026.
| Lender | Closing costs | Annual fee | Early closure |
|---|---|---|---|
| Bank of America | "No closing costs, no application fees, no annual fees, and no fees to use the funds" | None | "An early closure fee applies... if you close your HELOC account within 36 months of opening it" (amount not stated on the page) |
| U.S. Bank | "In addition, there are no application fees or closing costs" (footnoted on the page) | "$75 will apply after the first year and is waived with an existing U.S. Bank Platinum Checking Package" | "1% of the original line amount, maximum $500... if the line is paid off and closed within the first 30 months" |
| Axos Bank | Range "$0 to $4,000"; the bank "will pay up to $750 in closing costs. Borrower will pay any closing costs in excess of $750" | "$50. The annual fee is waived during the first year" | Within 36 months: "an early closure fee of $750 plus any mortgage and government taxes and any closing agent or attorney fees" the bank paid |
| Navy Federal Credit Union | Pays "all closing costs on HELOC applications"; for lines up to $250,000 these "typically range between $300 and $2,000"; no application, origination, annual or inactivity fee | None | Not stated on the product page |
Axos's wording shows how a recapture works: the bank pays up to $750 of the closing costs, then charges a $750 early-closure fee plus the taxes and closing agent or attorney fees it paid if the line closes within 36 months. Read the early-closure paragraph in any offer before you treat "no closing costs" as free.
How do you compare HELOC fee schedules?
Price each offer over the time you expect to keep the line. Three hypothetical structures show why the answer changes with time. None is a specific lender's offer.
- Structure A, pay at closing: $1,500 in closing costs paid up front, no annual fee, no early-closure fee.
- Structure B, no closing costs with recapture: the lender pays $1,800 of third-party costs, which you repay if the line closes within 36 months; $75 annual fee from year 2.
- Structure C, flat early-closure fee: no closing costs; early-closure fee of 1% of a $60,000 line, capped at $500, if closed within 30 months; $75 annual fee from year 2.
Worked example: total fees by how long you keep the line
| Kept for | Structure A | Structure B | Structure C |
|---|---|---|---|
| 2 years, then closed | $1,500 | $1,800 recapture + $75 = $1,875 | 1% × $60,000 = $600, capped at $500; + $75 = $575 |
| 5 years, then closed | $1,500 | 4 annual fees × $75 = $300 | 4 annual fees × $75 = $300 |
| 10 years (full draw period) | $1,500 | 9 annual fees × $75 = $675 | 9 annual fees × $75 = $675 |
Annual fees are counted once for each year after the first: one fee by the end of year 2, four by the end of year 5, nine by the end of year 10. Structure B looks free at closing and is the most expensive if you sell or refinance within two years. Structure A is the most expensive if you keep the line for five years or more.
Before you sign, find three numbers in the disclosure: the total closing costs (paid by you or by the lender), the early-closure fee or recapture and how many months it lasts, and the annual fee and when it starts. If you might sell, move or refinance within three years, the second number matters most.
Which HELOC fees can be avoided or recovered?
- Rescission refund. If the home is your principal dwelling, Regulation Z gives you until midnight of the third business day after opening (or after you receive the required notice and disclosures, if later) to cancel. The CFPB booklet says the lender must then return all fees paid to open the account, including any application and appraisal fees.
- Application fee if declined. The CFPB warns it "might not be refunded if you are turned down." Regulation Z also bars a nonrefundable application fee until three business days after you receive the HELOC disclosures and booklet. Ask before paying.
- Annual fee waivers. U.S. Bank waives its annual fee with a qualifying checking package; Axos waives it in year one. Ask whether a relationship discount applies.
- Conversion fee. If you plan to lock part of the balance at a fixed rate, ask about the conversion fee up front.
- Tax treatment. IRS Publication 936 says interest on home equity loans and lines of credit is deductible "only if the borrowed funds are used to buy, build, or substantially improve the taxpayer's home that secures the loan." It does not say fees are deductible; ask a tax professional about any points.
How do HELOC fees compare with a cash-out refinance?
A cash-out refinance replaces your whole mortgage, so its closing costs are charged on the full new loan, not only the cash you take out. A HELOC's costs apply to the line alone. That is one reason a HELOC can cost less to open when your current mortgage rate is low. Our HELOC vs cash-out refinance page works through both sets of costs.
If you apply through a matching service rather than a single lender, fees come from whichever lender makes the offer, so ask that lender for its HELOC fee disclosure. Lenders' credit, equity and DTI rules are on HELOC requirements.
Common questions
Are there closing costs on a HELOC?
Usually some, paid either by you or by the lender. The CFPB lists appraisal, title, attorney, filing, insurance and tax costs. Navy Federal says that for lines up to $250,000 these typically range between $300 and $2,000.
What is a HELOC early closure fee?
A fee for closing the line within an early period, usually the first two or three years, per the CFPB. U.S. Bank charges 1% of the original line, up to $500, within 30 months; Axos charges a $750 fee plus the taxes and closing agent or attorney fees it paid, within 36 months.
Is a no-closing-cost HELOC really free?
Not always. U.S. Bank advertises no application fees or closing costs but charges 1% of the original line, up to $500, if the line is closed within 30 months, plus a $75 annual fee after the first year. Axos does not advertise no closing costs: it pays up to $750 of them, and if the line closes within 36 months it charges a $750 fee plus the taxes and closing agent or attorney fees it paid on your behalf.
Do I pay a HELOC annual fee if I do not use the line?
Often yes. The CFPB booklet defines an annual fee as charged "regardless of whether or not the product is used."
Can I lose my home with a HELOC?
Yes. The CFPB warns that if you fall behind or cannot repay on schedule, you could lose your home.
Sources
- Consumer Financial Protection Bureau, "What fees can my lender charge if I take out a HELOC?", last reviewed June 27, 2024, accessed October 26, 2026.
- Consumer Financial Protection Bureau, "What you should know about Home Equity Lines of Credit (HELOC)" brochure, last updated August 2022, accessed October 26, 2026.
- Consumer Financial Protection Bureau, "What you should know about home equity lines of credit" (booklet), accessed October 26, 2026.
- Consumer Financial Protection Bureau, "What is a home equity line of credit (HELOC)?", last reviewed August 28, 2026, accessed October 26, 2026.
- 12 CFR 1026.40, Requirements for home equity plans (Regulation Z), via eCFR, accessed October 26, 2026.
- 12 CFR 1026.15, Right of rescission (Regulation Z), via eCFR, accessed October 26, 2026.
- Bank of America, "What is a home equity line of credit (HELOC)?", accessed October 26, 2026.
- U.S. Bank, "Home Equity Line of Credit (HELOC)", accessed October 26, 2026.
- Axos Bank, "HELOC Disclosures and Assumptions", accessed October 26, 2026.
- Navy Federal Credit Union, "Home Equity Line of Credit (HELOC)", accessed October 26, 2026.
- Internal Revenue Service, Publication 936 (2025), accessed October 26, 2026.
- Consumer Financial Protection Bureau, “What you should know about Home Equity Lines of Credit (HELOC) (brochure, last updated 08/22)”
- Consumer Financial Protection Bureau, “What you should know about home equity lines of credit (booklet)”
- Internal Revenue Service, “Publication 936 (2025), Home Mortgage Interest Deduction”
Loans Generator is not a lender or mortgage broker and does not make credit decisions. A HELOC is secured by your home; if you cannot repay it, you could lose your home. Fee terms quoted here were checked on October 26, 2026 unless another date is given, and change without notice. Availability and terms vary by lender and by state. This page is general information, not legal, tax or financial advice.