How Much Will My Home Equity Loan Cost?

Though interest is the largest expense incurred by a home equity loan, be aware that you will be responsible for such closing costs as an application fee, insurance, and document preparation fees. In order to determine the current value of your home, you’ll also need to have your home professionally appraised. Some closing costs can be waived or negotiated, so be sure to speak with your lender about how to get the best deal. Also ask your lender if there is a prepayment penalty; either way, make sure you understand the prepayment schedule.

What Documents Will I Need?

Once you’ve chosen a reliable and reputable mortgage lender, you’ll need to prepare the following for the home equity loan application process: personal information for anyone on the application; employment and income verification; current balance of your mortgage(s); and current appraised value of your home.