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Home equity loan closing costs typically run between 2% and 5% of your loan amount — meaning a $100,000 loan could cost $2,000 to $5,000 in fees before you see a dollar of equity. On a $50,000 loan, expect $1,000 to $2,500. The exact figure depends on your lender, your location, and the specifics of your loan — but the fee categories are consistent across lenders.
The most important thing to know upfront: many of these fees are negotiable, some can be waived, and a handful can be rolled into the loan so you owe nothing out of pocket at closing. This guide breaks down every fee you're likely to encounter, which ones you can push back on, and how to use the federally required Loan Estimate to compare lenders accurately.
...in as little as 3 minutes — no credit impact
What home equity loan closing costs cover
Closing costs fall into two categories: lender fees and third-party fees. Lender fees are set by the lender and are often negotiable. Third-party fees are charged by outside providers — appraisers, title companies, county recorders — and are generally harder to negotiate, though you may have the right to shop for your own provider.
| Fee | Typical cost | Negotiable? |
|---|---|---|
| Origination fee | 0.5%–1% of loan amount | Yes |
| Appraisal fee | $300–$600 (AVM may be lower or waived) | Sometimes |
| Credit report fee | $30–$100+ per borrower | Sometimes |
| Title search | $75–$450 | Sometimes — you may shop |
| Title insurance (lender's policy) | 0.1%–1% of loan amount | Sometimes — you may shop |
| Document preparation fee | $100–$400 | Yes |
| Attorney fee (required in some states) | $200–$1,000+ | No |
| Notary fee | $20–$150 | No |
| Recording fee | $15–$75 | No |
| Mortgage points (optional) | 1% of loan amount per point | N/A — your choice |
Fee ranges are estimates based on current market data and vary by lender, loan amount, and location. Request a Loan Estimate from any lender for itemized figures specific to your loan.
Here's what each fee actually covers:
Origination fee
The origination fee covers the lender's cost of processing, underwriting, and funding your loan. It's typically the largest lender-controlled closing cost — usually 0.5% to 1% of the loan amount, though some lenders charge a flat fee. On a $100,000 loan, that's $500 to $1,000. This fee is one of the most negotiable items on the closing disclosure, particularly if you have strong credit, low debt, or a prior relationship with the lender.
Appraisal fee
Before approving your home equity loan, your lender needs to confirm your home's current market value — which determines how much equity you have available to borrow against. Traditional in-person appraisals typically cost $300 to $600, though complex or remote properties can run higher. Many lenders now use automated valuation models (AVMs) as an alternative, which are faster, cheaper, and sometimes waived entirely. At Better, borrowers who qualify for AVM may have the appraisal requirement waived.
Credit report fee
Lenders pull your credit from at least two or three bureaus to verify your score and payment history. These fees have increased significantly in recent years — some sources report increases of 25% to 400% depending on the credit bureau and report type — and most borrowers should expect to pay $30 to $100 per borrower on the application. If you're applying with a co-borrower, the lender will pull and charge for both.
Title search and title insurance
A title search examines public records to confirm you have clean ownership of your home and that no outstanding liens or claims exist that would interfere with the new lien your home equity loan creates. Title searches typically cost $75 to $450. Many lenders also require a lender's title insurance policy — which protects the lender (not you) against unexpected ownership claims — adding 0.1% to 1% of the loan amount. In some cases, because you already purchased owner's title insurance when you bought the home, the lender may accept a lower-cost endorsement rather than a full new policy. Ask your lender and shop the title provider independently if permitted.
Document preparation and attorney fees
These fees cover preparing the legal documents required to close your loan. In some states, an attorney must be present at or review closing — a requirement that adds cost but isn't negotiable if it's state law. Document preparation fees typically run $100 to $400. Attorney fees vary widely by state and situation.
Notary, recording, and other administrative fees
A notary must verify and witness your signatures on loan documents. Recording fees are charged by your county to record the new lien on your property in public records. These are small, non-negotiable, and consistent: notary fees typically run $20 to $150; recording fees run $15 to $75 depending on jurisdiction.
Mortgage points (optional)
Discount points are an optional upfront payment that permanently reduces your interest rate. Each point costs 1% of your loan amount and typically lowers your rate by 0.25%. Paying points makes sense if you plan to keep the loan long enough for the monthly savings to exceed the upfront cost. This is not a fee — it's a choice.
How to read your Loan Estimate
Within three business days of applying for a home equity loan, your lender is federally required to provide a Loan Estimate — a standardized three-page form that itemizes your projected closing costs, interest rate, and monthly payment. This document is your primary comparison tool.
The Loan Estimate breaks costs into two clear groups: Section A (origination charges — lender fees you typically cannot shop) and Section C (services you can shop — usually title and settlement services). For Section C items, you have the right to choose your own provider, which gives you a real opportunity to reduce costs by getting quotes from multiple title companies.
Collect Loan Estimates from at least three lenders before choosing. Compare Section A fees directly — these reflect each lender's cost structure. Compare Section C fees too, but understand you may be able to reduce them regardless of which lender you choose by shopping the service providers yourself.
Understanding the closing disclosure — the final document you receive before closing — helps you verify the final figures match what was quoted in the Loan Estimate.
How to lower your home equity loan closing costs
1. Negotiate origination and lender fees directly
Origination fees are the most negotiable item on a home equity loan. If you have strong credit (700+), low existing debt, and are borrowing a substantial amount, you have leverage. Ask your loan officer to reduce or waive the origination fee. If a competing lender offers a lower fee, present that Loan Estimate and ask your preferred lender to match it. This approach works more often than most borrowers expect.
You can also ask lenders to waive smaller fees — credit pull fees, document preparation fees, and processing fees are sometimes removed for qualified borrowers or existing customers.
2. Roll closing costs into the loan
Some lenders, including Better, allow you to roll your closing costs into the loan balance rather than paying them upfront. This creates zero out-of-pocket costs at closing — you simply borrow slightly more and repay the fees as part of your loan. The tradeoff is that you'll pay interest on the rolled-in fees over the life of the loan. Run the math: for most borrowers on a fixed-term home equity loan, the cost of financing $2,000–$4,000 in fees is modest relative to the benefit of preserving cash at closing.
3. Ask about no-closing-cost options
Several lenders offer home equity loans with no closing costs. These typically offset the waived fees through a slightly higher interest rate. Whether a no-closing-cost loan is cheaper overall depends on how long you plan to keep the loan — if you pay it off early, you come out ahead with no fees; if you keep it the full term, the higher rate may cost more than the fees would have. Get the math from your lender before deciding.
4. Leverage your existing relationship
If you have a checking account, savings account, or existing mortgage with a lender, ask about relationship pricing. Many financial institutions offer fee discounts or waivers for existing clients. Better's Better Forever program, for example, waives origination fees on future purchase or refinance loans for customers who close a loan with Better — a benefit that compounds over time if you anticipate future mortgage transactions.
5. Improve your credit profile before applying
Lenders apply risk-based pricing to home equity loans just as they do to purchase mortgages. A higher credit score can unlock lower origination fees, waived appraisal requirements (through AVM eligibility), and better rate tiers. If your score is below 700, taking three to six months to reduce credit utilization, clear any derogatory marks, and add positive payment history can meaningfully reduce your total cost of borrowing.
6. Shop service providers in Section C
For any service your lender designates as shoppable — typically title and settlement services — get at least two to three quotes from competing providers. Title companies set their own fees, and the spread between providers in the same market can be several hundred dollars. Your lender will provide a list of approved providers, but you are not obligated to use that list.
Should you consider a HELOC instead?
If flexible access to funds matters more than a fixed monthly payment, a HELOC may have a lower closing cost profile than a home equity loan — particularly with lenders who waive upfront fees on lines of credit. The structural differences matter:
| Feature | Home equity loan | HELOC |
|---|---|---|
| Upfront closing costs | 2%–5% of loan amount | Often lower; some lenders waive entirely |
| Disbursement | Lump sum at closing | Draw what you need, when you need it |
| Interest accrual | On full loan amount from day one | Only on the outstanding balance drawn |
| Rate type | Typically fixed | Usually variable; some lenders offer fixed-rate options |
| Ongoing fees | None typically | Possible annual, inactivity, or draw fees |
| Early closure risk | Prepayment penalty on some loans | Early termination fees if closed within 2–3 years |
The HELOC comparison matters most if you don't need all your equity at once. Borrowing $80,000 through a HELOC and drawing $20,000 initially means you pay interest on $20,000 — not $80,000. If the project or need is staged over time, a HELOC's structure can save meaningful money in interest even if the closing costs are similar.
Better offers HELOCs with no application fees, no annual fees, and no fees to use the funds. You can also roll closing costs into the line, creating zero upfront cost. Use the HELOC calculator to estimate how much equity you can access and what your monthly payment might look like, or compare your options with the HELOC vs. cash-out refinance calculator.
...in as little as 3 minutes — no credit impact
Frequently asked questions
How much are home equity loan closing costs on a $100,000 loan?
At the standard 2%–5% range, closing costs on a $100,000 home equity loan run $2,000 to $5,000. The exact figure depends on your lender's origination fee, whether an in-person appraisal is required, and your state's title and recording requirements. Some lenders offer no-closing-cost options or allow you to roll fees into the loan balance.
What is the biggest closing cost on a home equity loan?
The origination fee is typically the largest single closing cost — usually 0.5% to 1% of the loan amount. On a $100,000 loan, that's $500 to $1,000. It's also the most negotiable. The appraisal fee and title insurance are the next largest categories. Together, these three items represent the majority of most borrowers' closing costs.
Can I get a home equity loan with no closing costs?
Yes. Some lenders offer home equity loans with no upfront closing costs by either waiving fees outright or recovering them through a slightly higher interest rate. Others, including Better, allow you to roll closing costs into the loan balance so you pay nothing out of pocket at closing. Whether the no-closing-cost structure saves you money overall depends on how long you keep the loan.
Are home equity loan closing costs tax deductible?
Generally, no — closing costs on a home equity loan are not deductible. However, mortgage interest on a home equity loan may be deductible if the funds are used to buy, build, or substantially improve the home securing the loan, subject to IRS limits. Consult a tax professional for guidance specific to your situation.
Can I negotiate home equity loan closing costs?
Yes — and you should. Lender-controlled fees like the origination fee, document preparation fee, and credit report fee are the most negotiable, particularly if you have strong credit or an existing relationship with the lender. Third-party fees like appraisals and title charges are harder to negotiate, but you may be able to shop for lower-cost providers in the title and settlement category. Always ask for competing Loan Estimates and use them as leverage.
What's the difference between closing costs on a home equity loan vs. a HELOC?
Both typically run 2%–5% of the loan or line amount, but HELOCs often have a lower or zero-cost upfront structure — particularly from lenders who waive origination fees on lines of credit. The tradeoff is that HELOCs may carry ongoing fees (annual fees, inactivity fees, early closure penalties) that home equity loans typically don't. Check the full fee picture across the life of the product, not just at closing.
How soon do I get my money after a home equity loan closes?
Federal law gives borrowers on primary residences a three-business-day right of rescission after closing — meaning funds are typically disbursed on the fourth business day. Some lenders, like Better, can fund in as little as 7 days from application for borrowers who qualify for AVM appraisal and submit documents promptly.¹
What documents does my lender have to give me at closing?
Your lender is required to provide a Loan Estimate within three business days of your application and a Closing Disclosure at least three business days before closing. Both documents itemize your fees in a standardized format. The closing disclosure guide explains how to read both documents and what to verify before you sign.
...in as little as 3 minutes — no credit impact
¹ Assumes borrowers are eligible for the Automated Valuation Model (AVM) to calculate their home value, their loan amount is less than $400,000, all required documents are uploaded to their Better Mortgage online account within 24 hours of application, closing is scheduled for the earliest available date and time, and a notary is readily available. Funding timelines may vary and may be longer if an appraisal is required to calculate a borrower's home value.