Not sure what to ask when comparison shopping for the best home equity line of credit? This convenient checklist covers the important points to address when shopping for a home equity line of credit or HELOC.
1 Is there a pre-payment penalty? If yes, what are the terms?
2 What is the draw period, and is an initial draw required?
3 Is there a monthly or annual limit on the number of draws?
4 What is the minimum draw amount?
5 What methods are acceptable for accessing funds (debit card, checkbook etc.).
6 What are the total fees and costs?
7 How frequently can the rate adjust?
8 What is the interest rate cap?
9 What triggers a demand for payment in full?
10 Are there transaction fees and, if so, how much?