Actual Cash Value
The cost it would take to repair or replace your home after depreciation.
Closing costs: fees for attorneys, title search, mortgage preparation and filing, property and title insurance, and taxes
Miscellaneous fees: for example, annual membership or maintenance fees; a transaction fee every time you draw on the credit line
It is important to weigh costs against how you will use the credit line. For example, if you draw a small amount against the line, these charges could significantly increase costs. HELOC APRs, however, are generally lower than rates for other types of credit. The interest savings could offset the above charges. Some lenders will waive some or all of the closing costs.
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