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Home Equity Loans

Home equity loan closing costs and fees: What to expect

Updated May 07, 2026

Written by

Rebecca Lake

Reviewed by

Jill Cornfield

Key takeaways:

Closing costs and fees for a home equity loan are typically 2% to 5% of the loan amount.
Common fees include an origination fee, appraisal fee, and a title search.
Your credit score and requested loan amount are factors that could influence the amount of closing costs you pay.

If you're interested in a home equity loan, your first concern might be how much you could borrow. What's easy to overlook is how much you'll pay to borrow against your equity.

Home equity loan closing costs typically run between 2% and 5% of the loan amount. You might pay the costs up front or roll them into your loan, if your lender offers that option.

Closing costs for a home equity loan include administrative, legal, and third-party fees that are necessary to finalize the loan. Estimating the costs beforehand can help you avoid being caught off-guard when you're ready to head to the closing table.

Do home equity loans have closing costs?

Yes, home equity loans have closing costs. You should generally expect to pay fees equal to 2%–5% of the amount you're borrowing.

On a $100,000 home equity loan, for example, that means roughly $2,000 to $5,000 in fees. The exact amount depends on the lender, your location, and the details of your loan.

These costs are separate from your interest rate. Lenders who waive upfront fees typically charge a higher rate in exchange. So, you might pay less out of pocket for your home equity loan initially, but pay more interest over the life of the loan.

What are the closing costs on a home equity loan?

Home equity loan closing costs fall into two categories: lender fees and third-party fees.

Lender fees are typically a percentage of your loan amount. Third-party fees are flat amounts charged by outside providers for services like appraisals and title searches.

Here is a breakdown of common home equity loan closing costs:

Fee	Typical range
Origination fee	1%–5% of the loan amount
Appraisal fee	$0–$1,000
Credit report fee	$30–$100
Title search fee	$75–$200
Title insurance	0.5%–1% of the loan amount
Document prep / attorney fees	$100–$500
Notary fee	$50–$200 per notarization
Filing / recording fees	$20–$100

Origination fee: Most lenders charge an origination fee for the loan. This fee is typically a percentage of the total loan amount. On a $100,000 loan, a 2.5% origination fee is $2,500. Not every lender charges the same amount, so this is one of the most important figures to compare across Loan Estimates.

Appraisal fee: Most lenders require an appraisal to determine the current value of your home. The cost varies depending on your location and property size. In person appraisals typically cost hundreds of dollars or more. Some lenders use automated valuation models (computer-based tools that estimate home value without an in-person visit) in place of full appraisals, which could reduce or eliminate the appraisal fee.

Credit report fee: Your lender typically pulls your credit report as part of the application. The cost varies by lender and has risen in recent years.

Title search fee: A title search confirms you are the rightful owner of the property and that no one else has a legal claim to it. The fee depends on your location and typically runs $75–$200.

Title insurance: Your lender may require title insurance to protect against unexpected ownership claims. The cost is generally 0.5%–1% of the loan amount.

Document prep and attorney fees: Some states require an attorney to be present at closing. Even where it is not required, some borrowers choose to have one review their loan paperwork. These fees typically range from $100–$500.

Notary fee: In most states, a notary is required to witness your signatures. The fee typically runs $50–$200 per notarization, though this varies by state.

Not every lender charges every fee. Ask about the full fee schedule before you apply.

How to read your Loan Estimate

A Loan Estimate is a standardized form your lender is required to provide when you apply for a home equity loan. Federal law mandates delivery within three business days of your application. The form shows your projected closing costs, interest rate, and monthly payment. Collecting Loan Estimates from multiple lenders and comparing them side by side is one of the most reliable ways to find the best overall deal.

The Loan Estimate breaks costs into the same two groups.

Lender fees are set by the lender and may be negotiable. If you find that one lender's origination fee is lower than another's, you may be able to ask the higher-cost lender to match it.
Third-party fees are charged by outside providers. For some third-party services, such as the title search, you may have the right to shop for your own provider, which could lower your cost.

Lenders provide Loan Estimates when you've shared your name, income, property address, estimated home value, desired loan amount, and Social Security number. Your Social Security number is used to perform a hard credit inquiry, which shows up on your credit reports.

If you only want to compare home equity loan rates from multiple lenders, you can do that without affecting your credit. Look for lenders that offer free rate quotes without a hard inquiry. Also, note that lenders don't provide Loan Estimates if you're applying for a home equity line of credit (HELOC). You'd get a Truth In Lending disclosure instead.

How to lower your home equity loan closing costs

Several steps may help reduce what you pay at closing.

Raise your credit score. The overall cost of your loan is largely based on your credit profile, and a stronger profile may lead to better terms overall. Pull your credit reports from all three credit reporting agencies via AnnualCreditReport.com. Review them for errors. Dispute anything inaccurate through each agency’s online process. Reduce revolving balances, such as credit card debt, and make consistent on-time payments to strengthen your score over time.

Shop and compare lenders. Closing costs vary from one lender to the next. Collect Loan Estimates or rate quotes from multiple lenders and compare not just the fees but the interest rate and total cost of the loan over time.

Negotiate with your lender. Ask whether any fees could be waived or reduced. Lenders may waive an application fee, find a less expensive third-party vendor, or offer a rate discount if you set up automatic payments from a checking account.

Borrow only what you need. Fees based on a percentage of the loan amount grow as the loan amount grows. Keep your loan amount lower to reduce those costs down.

Weigh no-closing-cost loan options carefully. Some lenders advertise home equity loans with no closing costs. In exchange, they often charge a higher interest rate. You may pay the lender upfront in fees, over time in interest, or both. Collect Loan Estimates for both scenarios and compare the total cost over the life of the loan, not just the upfront fees.

Home equity loan closing costs are predictable once you know what to look for. A little preparation before you apply goes a long way toward keeping costs manageable.

Author Information

Written by

Rebecca Lake

Rebecca is a senior contributing writer and debt expert. She's a Certified Educator in Personal Finance and a banking expert for Forbes Advisor. In addition to writing for online publications, Rebecca owns a personal finance website dedicated to teaching women how to take control of their money.

Reviewed by

Jill Cornfield

Jill is a personal finance editor at Achieve. For more than 10 years, she has been writing and editing helpful content on everything that touches a person’s finances, from Medicare to retirement plan rollovers to creating a spending budget.

Home Equity Loans

Frequently asked questions: Home equity loan closing costs and fees

Yes, home equity loans have closing costs. They typically include fees for origination, appraisal, title search, credit report review, and document preparation. Not every lender charges every fee. Ask about the full fee schedule before you apply.

Home equity loan closing costs generally range from 2%–5% of the loan amount. On a $100,000 loan, that typically means $2,000 to $5,000 in upfront fees. The exact amount depends on the lender, the loan size, and your location. Collect Loan Estimates from multiple lenders for the most reliable way to compare actual costs before you commit.

Closing costs cover the services required to originate and finalize the loan. An appraisal verifies your home's current value. A title search confirms ownership and checks for existing claims. A credit check assesses your financial profile. Document preparation and notarization formalize the legal agreement. Some fees go to the lender. Others go to third-party providers who perform specific services as part of the loan process.