1. HELOC Interest Rate.
The interest rate applicable to your HELOC, which can be fixed or variable, impacts the cost of borrowing over the loan term.
2. Loan Term and Repayment Options.
Understand the duration of your loan and the available repayment options, including interest-only or principal and interest payments.
3. Credit Limit and Available Credit.
Know your credit limit and how much of it remains available for use during the draw period.
4. Minimum Monthly Payment Requirements.
Learn about the minimum monthly payments required and how they are calculated.
5. Draw Period Details.
The draw period specifies how long you can access funds and make withdrawals from your HELOC.
6. Closing Costs and Fees.
Be aware of any upfront costs, fees, or charges associated with opening the HELOC account.
7. Prepayment Penalties (if applicable).
Determine whether there are penalties for paying off the HELOC early and, if so, their terms.
8. Variable Rate Information.
If your HELOC has a variable interest rate, understand how the rate is determined and how often it may change.
9. Default and Consequences.
Familiarize yourself with the conditions under which the lender can declare your HELOC in default and the resulting consequences.
10. Important Contact Information.
Keep a record of the lender's contact details, including their customer service and collections departments.