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Account Termination Fee
January 19, 2023
For a HELOC loan, your lender will expect or require you to have your account open for a certain period of time. If you happen to pay your loan early or decide to refinance and close your account, your lender may charge you with an early termination or cancellation fee. In order for your account to be terminated, you must pay the loan amount in full. If you happen to pay for HELOC in 5 years and choose to terminate your account, you will likely incur a fee. Most lenders charge around 2% of the principal balance (a maximum of $450) if you close the account before the five-year mark.
Related Topics
When Is the First Mortgage Payment Due?
What Does Foreclosure Mean?
What Is a HELOC Loan?
Loan Default
Financial Considerations (For First-Time Home Buyers)
Mortgage Loan Types
Payment and Debt Ratios
Home Value: Appraised, Estimated, Actual