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
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.