home equity loan closing costs decoded: myth vs fact

In last week's lender files, a Pennsylvania credit union listed a $95 recording fee and zero origination - useful context.

What the costs cover

• Core home equity loan fees: appraisal, title, recording; points are rare.
• Average closing costs for home equity loan: often 2 - 5%. Minor backtrack: more precisely, small balances amplify fixed fees.

Myth vs fact

• Myth: "No-closing-cost home equity loan" is free. Fact: Credits trade for higher rates or recapture.
• Myth: HELOC closing costs are always lower. Fact: HELOCs shift expenses to annual or inactivity fees.
• Myth: All charges are deductible. Fact: Many ask "are home equity loan closing costs tax deductible?" - generally no; interest may be if used to improve the home.

Comparison lens

Home equity loan vs HELOC: fixed-rate certainty versus variable flexibility; compare APR plus home equity loan fees and HELOC closing costs.