Home Equity Line of Credit

lullabella Posted: Sep 15, 2004 02:43 PM

Home Equity Line of Credit

Hi,
On this type of the credit line, do u have to pay mortgage tax? So for example if you want to open up a line of credit for say $50k, do you have to pay mortgage tax upfront even if you are not sure you are going to use the entire amount.

Thanks

Florenze Posted: Sep 15, 2004 03:14 PM

Re: Home Equity Line of Credit

Nope, no mortgage tax is applied. It is essentially an open credit line, if you never use it, it won't cost you a dime (if you opt for a no-closing cost HELOC). Make sure you get a good rate; prime for life is common. Sometime to secure a good rate you must opena line for a determined minimum (may 50k), and somtimne they require you 'draw' it at closing. That measns you must take out the whole 50k; the bank hopes you will spend it, but you can just send it back to them the next day.