When looking for a home equity line of credit you will have many options to choose from. Most notably you will have the option of a no fee home equity line of credit. The lender will pay all fees associated with he closing of your HELOC for an increase in the margin charged over prime.
Often, you will have the choice of no closing costs or to pay these costs. Ask your mortgage professional to do a comparison of the two for you. Closing costs for equity loans are usually quite low and, depending upon how long you will have the loan, the lower interest rate you pay may offset the closing costs.
When choosing your line of credit also be sure to know what your rate will be after the initial teaser rate if there is one. Often times these lines of credits have a a short term teaser rate.
The monthly payment on a HELOC is based upon the outstanding balance, not the credit limit. Advantage - you only pay for it if you use it!
A no closing cost HELOC is always a good idea to have. It costs you no money to take out, and it gives you emergency money for any incidentals for the homme or unforeseen costs that you may have.
Many Equity Lines of Credit, and especially no cost home equity lines of credit, will still have an annual fee. Most of the time the annual fee is waived for the first year and then each anniversary date of when you obtained the loan you will have a annual fee assessed. This fee is usually around $50, give or take a little, but it just depends on the actual lender.
Many no cost HELOCs are also not available to borrowers without platinum level credit scores.