What are the origination fees and closing costs for a HELOC?
The primary cost of a home equity line in this program is an origination fee ranging from 0% to 4.99% of the initial draw, set by your credit profile and state. Beyond that, you pay third-party costs: recording fees and taxes, a valuation fee if an automated value is unavailable or an appraisal is required (above $400,000), and manual notary fees where e-closing is not permitted. This program has no account-opening fees and no ongoing maintenance fees.
THE NUMBERS
| Line amount | $15,000 – $750,000 (program’s range; your maximum depends on value, liens, credit and verified income) |
|---|---|
| Valuation | Automated valuation for eligible lines under $400,000 · appraisal above $400,000; confirm the exact threshold with the lender |
| Rate type | Fixed; variable where this program offers it (not in every state) |
| Terms | 5, 10, 15 or 30 years |
| Draw structure | 100% drawn at origination · repaid principal can be redrawn for 2–5 years, each redraw priced on its own date |
| Funding time | As few as 5 business days, on eligible lines, with remote online notary on lines under $400,000 |
| Origination fee | 0% – 4.99% of the initial draw, on eligible lines |
| Property use | Primary residence, second home and investment property; the lender confirms property-type eligibility |
| Combined LTV | Varies; 85% used only for illustrative equity arithmetic |
| Credit | Soft pull to see an offer · minimum generally 640, 680 on investment property |
| Ownership | Owners on title individually, jointly or in a revocable trust — not an LLC |
| Availability | Varies by state |
PROGRAM FACTS AS OF OCTOBER 2026 — not a quote, an offer or a commitment to lend. Rates, terms and eligibility are set by the lender and change.
How is the origination fee determined?
The lender sets the origination fee based on your credit score, the property's state, the line amount and the combined loan-to-value. During the application you are often presented with a choice: a higher rate with a lower fee, or a lower rate with a higher fee. This fee is calculated as a percentage of your initial draw and is deducted from the funds sent to your account at closing. Because it is a one-time cost, a higher fee is generally more efficient if you plan to keep the line for years, while a zero-fee option is better for short-term capital needs.
What are the third-party costs?
These are costs paid to others to close the loan, not kept by the lender. They include government recording fees and mortgage taxes, which vary significantly by county and state. If your property is in a county that does not allow remote online notary, you will also pay for an in-person notary. If the automated valuation model (AVM) cannot produce a reliable value for your home, or if you are borrowing more than $400,000, you will pay for a traditional appraisal or a desktop valuation. These costs are disclosed upfront once your property is identified.
Are there any 'hidden' or ongoing fees?
The sourced fee range covers origination on the initial draw. Ask the lender for the complete offer disclosures and any recurring, third-party or early-payoff costs before accepting.
Does the fee apply to redraws?
The sourced disclosure describes an origination fee on the initial draw. Confirm any redraw costs with the lender; each redraw is priced on its own date and may cost more than the original draw.
How do these costs compare to a cash-out refinance?
A DSCR cash-out refinance involves a full set of closing costs: title insurance, a full appraisal, escrow fees, and lender points. On a large loan, those fixed costs are spread over a larger balance and may be cheaper per dollar borrowed. On a smaller amount — say $50,000 to $150,000 — the HELOC's simpler fee structure and lack of title insurance requirements usually make it the lower-cost way to access equity.
Worked example — $100,000 line, 2.99% fee option
| Initial draw | $100,000 |
|---|---|
| Origination fee (2.99%) | -$2,990 |
| Net funds to borrower | $97,010 |
| Estimated recording & taxes | $250 - $1,200 (varies by state) |
| Annual maintenance fee | $0 |
| Other costs | Confirm the lender’s offer disclosures |
ILLUSTRATIVE. Fees and third-party costs are determined by the lender based on your specific file and location.
WHAT YOU'LL NEED
- Credit profile — higher scores often qualify for lower fee options.
- Property address — determines the recording fees and taxes.
- Desired line amount — sets the base for the percentage fee.
FREQUENT QUESTIONS
- Does the lender charge an annual fee?
- No. The program specifies there are no annual or maintenance fees.
- Can I roll the fees into the loan?
- The origination fee is deducted from the initial draw; third-party costs are typically paid at closing.
- Is there a fee to redraw money?
- The lender does not charge an origination fee on redraws of repaid principal.
- What is the maximum origination fee?
- The program lists a range up to 4.99% of the initial draw.
RELATED
PART OF SILT ACADEMY → COURSE 10: USING HOME EQUITY · LESSON 10.8
Reviewed October 2026 · Home equity lines are offered through a lending partner; Silt Capital does not originate HELOCs. Terms and eligibility are set by the lender.