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Irishbride
"I'm Addicted"
Member since 2/03 2170 total posts
Wedding Date:
6/11/2004 3:00 PM
Wed. Location:
The Beach Club Estate on Lake Ronkonkoma
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Home equity line of credit
Do you have to pay closing costs on a home equity line of credit? I am clueless when it comes to this stuff. We are planning on redoing a major part of the main part of our house.
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Posted 1/20/05 2:11 PM 
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dgtlsunshine
Back to the Workforce :)
Member since 12/01 2838 total posts
Wedding Date:
7/7/2002 12:00 AM
Wed. Location:
Coral House
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Re: Home equity line of credit
I believe it is only $100 at most places if that.
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Posted 1/20/05 2:47 PM
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MrsJ
I love my DH
Member since 4/04 2089 total posts
Wedding Date:
11/27/2004 3:00 PM
Wed. Location:
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Re: Home equity line of credit
It depends on the lender. We are taking out a home equity loan and there are no closing costs. We are taking out the loan with our credit union who holds the mortgage on the house. I think each bank/lender varies. You could check out different banks online - start with who ever holds the mortgage on your house.
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Posted 1/20/05 3:16 PM
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Irishbride
"I'm Addicted"
Member since 2/03 2170 total posts
Wedding Date:
6/11/2004 3:00 PM
Wed. Location:
The Beach Club Estate on Lake Ronkonkoma
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Re: Home equity line of credit
Thanks for the info.
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Posted 1/20/05 4:38 PM
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MrsJ
I love my DH
Member since 4/04 2089 total posts
Wedding Date:
11/27/2004 3:00 PM
Wed. Location:
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Re: Home equity line of credit
You're welcome :)
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Posted 1/20/05 5:13 PM
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kelly4
Little one due Feb 25, 2006!
Member since 12/01 2658 total posts
Wedding Date:
10/20/2002 12:00 PM
Wed. Location:
Westbury Manor
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Re: Home equity line of credit
we took one out and didn't pay closing costs. I'm glad we did it!
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Posted 1/20/05 7:05 PM
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lullabella
"I'm Addicted"
Member since 10/03 1112 total posts
Wedding Date:
11/20/2004 12:00 AM
Wed. Location:
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Re: Home equity line of credit
Really? I thought you had to pay mortgage tax? Actually I am pretty sure you do, at least we did anyway. 
Edited: Maybe it is because we took out a HELOC in full?
Message edited 1/21/2005 9:42:25 AM.
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Posted 1/21/05 9:40 AM
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Kel
It's An Obsession
Member since 2/01 3131 total posts
Wedding Date:
9/30/2001 4:00 PM
Wed. Location:
John Anthony's
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Re: Home equity line of credit
A mortgage tax on a home equity line of credit????
I'm confused.
And could someone explain to me how this equity line of credit works??
Is this right:
You get X amount of dollars, against the equity in the house .. then you have a monthly payment (like a credit card, only with a better interest rate)???
In general .. what is the length .. is it 30 years like a mortgage??
I feel so stupid!
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Posted 1/21/05 11:45 PM
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thiadora
We're homeowners!
Member since 2/04 1555 total posts
Wedding Date:
10/3/2004 11:30 AM
Wed. Location:
Flowerfield
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Re: Home equity line of credit
Posted by Kel
A mortgage tax on a home equity line of credit????
Mortgage tax is paid on all recorded mortgages. The county will not record the mortgage unless the correct tax amount accompanies the document. In Nassau and Suffolk it is 1% of the loan amount. The bank typically pays 1/4 of the 1% (called the "quarter point"). In the boroughs the mortgage tax is 2%, the bank still pays a 1/4 of 1%. (However, Federal instituations are exempt from paying the 1/4 point.)
On a credit line mortgage you pay the mortgage tax on the entire line of credit, even if you never use the whole thing (because it's pre-paid).
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Posted 1/22/05 1:00 AM
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Deb_n_Rob
Board Fanatic
Member since 11/03 836 total posts
Wedding Date:
11/28/1998 3:00 PM
Wed. Location:
Meadow Club
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Re: Home equity line of credit
Posted by Kel
A mortgage tax on a home equity line of credit????
I'm confused.
And could someone explain to me how this equity line of credit works??
Is this right:
You get X amount of dollars, against the equity in the house .. then you have a monthly payment (like a credit card, only with a better interest rate)???
In general .. what is the length .. is it 30 years like a mortgage??
I feel so stupid!
Don't feel stupid because I was thinking the same question!!!
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Posted 1/22/05 11:28 AM
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kelly4
Little one due Feb 25, 2006!
Member since 12/01 2658 total posts
Wedding Date:
10/20/2002 12:00 PM
Wed. Location:
Westbury Manor
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Re: Home equity line of credit
a HELOC (what we have) is best explained as a high limit credit card. You can either have the interest fixed or adjustable. YOu choose how much you want your limit to be and if approved, you can withdraw on that money using a "check book" for anything you want. The reason it is like a credit card is that you only pay interest on what you have spent.
for example, my DH and I just took a HELOC for $50k. We decided to pay off credit cards and do some work around the house- which we figure we will be using only $20k of it. so, what ever we use we will be paying interest on. If we never touch teh rest of te 50k, we dont pay interest on it.
we took out more on the line of credit for emergency purposes since you just have to write a check and the money;s there- since we dont pay interest until we use it.
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Posted 1/22/05 11:55 AM
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kkattau
Board Enthusiast
Member since 3/03 217 total posts
Wedding Date:
1/31/2004 12:00 AM
Wed. Location:
Miller Place Inn
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Re: Home equity line of credit
It depends on the bank. Sometimes banks promote "no closing cost" heloc's - but there are certain things that must be paid when you take out a mortgage - recording fee to record your mortgage and mortgage tax - they both get paid to the county. A lot of times you don't get title insurance on a heloc because you already had it on your first mortgage and the bank will not require it. Let me know if you have any more questions 
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Posted 1/22/05 4:35 PM
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corinne7477
"I'm Addicted"
Member since 3/03 1362 total posts
Wedding Date:
12/31/2003 6:45 PM
Wed. Location:
Jericho Terrace
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Re: Home equity line of credit
no closing costs at citibank as long as you dont pay off the line in 3 years.
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Posted 1/22/05 7:17 PM
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