Palmetto Citizens Credit Union offers home equity loans for Richland County borrowers can use to cash in on the value of their homes. However, before cashing in on any property’s equity, borrowers must close on the loan.
What Is Closing?
Closing is the final step in the process of obtaining any loan, including a home equity loan. Many loans require borrowers to pay certain fees during this time, which are known as closing costs.
Examples of common closing costs include origination fees, appraisal fees and recording fees.
Closing Costs for Home Equity Loans
The process of approving and closing a home equity loan is not as lengthy or expensive as the process of obtaining a first mortgage. However, many lenders still charge closing costs when processing home equity loans.
Depending on the lender’s requirements, you may need to pay these fees out-of-pocket at closing, or you may be able to roll them into the loan.
If you roll closing costs into the loan, your initial balance will be higher, but you won’t need to pay anything when you close the loan.
It is also important to note that rolling closing costs into the loan will increase the loan’s overall cost, as interest will be calculated on a higher balance.
The Bottom Line
Closing costs are not the highest expense associated with a home equity loan. For most homeowners, the most expensive part of the loan will be interest.
For this reason, it is important to compare options carefully before applying for a loan.
To learn more about home equity loans in Richland County or to begin an application, please contact Palmetto Citizens Credit Union today.