As mentioned above, the borrower only pays interest on the balance that the borrower maintains on their home equity credit line account. That interest is usually tax-deductible for most homeowners.
The cost to obtain a home equity line of credit will be the same as the closing costs required to obtain a standard home equity loan. Most homeowners can expect a flat fee of $500-$800 dollars, some of which may be tax-deductible.
Most lenders will charge an annual fee of $25-$50, especially if the borrower does not use the credit line. Some banks are willing to waive this fee for its favored borrowers. Also, this fee may be tax-deductible: please consult your tax preparer or accountant.
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