Fees can make an otherwise affordable loan expensive. But some fees, such as the annual maintenance fee charged on a home equity line of credit (HELOC), can actually lower the costs of your loan, depending on how you intend to use your HELOC.Many of the fees associated with a HELOC should be avoided, such as an application fee, an appraisal fee, and a "non-usage" fee charged for leaving the money in your line of credit untouched. (The non-usage fee is particularly disagreeable, since one of the main benefits of a HELOC is its usefulness as a safety net in case of emergencies.) But the decision to choose a HELOC with an annual fee depends on whether it offers a better interest rate than non-fee loans and how frequently you plan on withdrawing money.
When a HELOC Fee Makes Sense
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