I just remodeled an older home and don't have a tremendous amount of cash on hand. I have about $100k (minus $30k I owe my parents) equity in the home, but am looking to get a HELOC to increase my liquidity and to pay them back (they are not at all pushing to get paid back ASAP, I just want to pay them back for peace of mind).

Anyways, the appraisal came back fine and I am set to close next week on the HELOC so I email to confirm that I will owe nothing at closing. The loan officer states that I will only owe title insurance. I don't recall that being mentioned in the application process.

Is this typical? I wasn't aware that the 2nd lender required title insurance. I only requested a LOC of $50k and the home is worth ~$400k

ETA: He estimated $400 for title insurance. Is that a one time fee?

This post was edited on 4/3/13 at 3:35 pm

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Posted by VABuckeye

Naples, FL

Member since Dec 2007

35481 posts

Posted on 4/3/13 at 3:50 pm to CidCock

It's a one time fee per loan. You should have received a Good Faith Estimate of Settlement Costs when you applied for the loan. The estimates for title insurance should be on that document.

This post was edited on 4/3/13 at 3:51 pm

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Posted by CidCock

Member since Sep 2007

Member since Feb 2011

8630 posts

Posted on 4/3/13 at 3:53 pm to VABuckeye

quote:
VABuckeye

Thanks, just asked for that.

These guys are clowns, I met with them 6 weeks ago and they just got around to getting the appraisal last week.

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Posted by VABuckeye

Naples, FL

Member since Dec 2007

35481 posts

Posted on 4/3/13 at 3:55 pm to CidCock

I hear you. My brother is refinancing to a 15 year and he had an impossible time getting mortgage companies to respond and do a little work. He's a perfect borrower. Pristine (over 800) credit score, solid employment history and 65% LTV on a simple rate reduction refinance.

This post was edited on 4/3/13 at 3:56 pm

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Posted by CidCock

Member since Sep 2007

Member since Feb 2011

8630 posts

Posted on 4/3/13 at 3:57 pm to VABuckeye

I had previously asked for a Truth in Lending Statement, is there such a thing for a HELOC that is subject to prime interest rates?

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Posted by VABuckeye

Naples, FL

Member since Dec 2007

35481 posts

Posted on 4/3/13 at 4:03 pm to CidCock

It's a mortgage at the end of the day. I believe they are required to supply you with the same disclosures they would on a first trust. You also get a three day recission period to cancel the loan after settlement.

quote:
The federal Truth in Lending Act requires lenders to disclose the important terms and costs of their home equity plans, including the APR, miscellaneous charges, the payment terms, and information about any variable-rate feature. And in general, neither the lender nor anyone else may charge a fee until aft er you have received this information. You usually get these disclosures when you receive an application form, and you will get additional disclosures before the plan is opened. If any term (other than a variable-rate feature) changes before the plan is opened, the lender must return all fees if you decide not to enter into the plan because of the change.

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Posted by CidCock

Member since Sep 2007

Member since Feb 2011

8630 posts

Posted on 4/3/13 at 4:05 pm to VABuckeye

quote:
It's a mortgage at the end of the day. I believe they are required to supply you with the same disclosures they would on a first trust. You also get a three day recission period to cancel the loan after settlement.

Interesting, I asked this when I applied. The bank basically said if I backed out after the application I would be on the hook for the appraisal cost (which they are currently paying). If that's the case, I'd be just as well served to take the loan and never use it.

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