The attractive interest rates that home equity loans offer people are often offset by the number of fees that are applied for using the home equity loan. This is why you should see if there is some sort of discount available for you to use if the bank pays the closing costs.

The rates and fees that are applied will vary depending on how much you borrow plus how much equity you actually have to borrow in the home. There are also those lenders that promise lower rates as a teaser to get you to bite, then adjust the rates within a specified period of time. Some of the fees that people should be aware of are annual account maintenance, application fees, closing costs, loan origination fees, and pre-payment penalties.

Make sure that all the fees are discussed upfront and whether there will be in changes in these fees over the duration of the home equity loan. In addition, see if the lender gives a discount for having multiple accounts with the institution so that you can get the most lenient fees that you can find.