Author Topic: Paying off HELOC is annually fee with zero balance normal?  (Read 299 times)

RunningMan3

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Paying off HELOC is annually fee with zero balance normal?
« on: April 30, 2019, 12:04:04 PM »
I'm planning on paying off the $11,000 remaining balance on my HELOC to a zero balance and keep the line of credit open. My HELOC is with TCF Bank. TCF Bank has a $75 annually fee on a zero balance HELOC. Is it normal to have an annual maintenance fee on a HELOC? Should I look at closing out the HELOC and opening a HELOC with a different bank? I'm not planning on any large payments, but wanted to keep a HELOC as a 3rd option for cash if I ever need it after emergency savings and my ROTH IRA.

Goldielocks

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Re: Paying off HELOC is annually fee with zero balance normal?
« Reply #1 on: April 30, 2019, 12:07:21 PM »
I have a fee to close the paid off Heloc, but not a zero balance annual fee.  I can leave it open with no activity for up to 5 years.

What happens if you leave a tiny amount on it?

RunningMan3

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Re: Paying off HELOC is annually fee with zero balance normal?
« Reply #2 on: April 30, 2019, 12:19:49 PM »
@Goldielocks Great questions. I will find out the fees to close it out. The interest rate on the HELOC is high (7.49%) + the variable. I was looking to just close out the debt and wasn't expecting the annual fee to keep the HELOC. I'll have to run the numbers to see if it makes sense to leave a tiny amount.

The_Pretender

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Re: Paying off HELOC is annually fee with zero balance normal?
« Reply #3 on: April 30, 2019, 01:35:06 PM »
My HELOC has an annual fee every year w/ or w/o a balance.  I just call my local branch manager and request for him to waive the fee.  Prior to having a balance I told him we plan on doing a large home reno and leveraging this credit for a few months.  When We had said debt, I told him that we are using it.  The guy had no problems waiving the fee.

I do it as an annual check up with the branch manager to say hello and I'm a happy customer with savings and checking with them.

katsiki

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Re: Paying off HELOC is annually fee with zero balance normal?
« Reply #4 on: April 30, 2019, 06:41:15 PM »
I would close and do a new one with a credit union.  You shouldn't have to pay an annual fee.  Shop around.