In today’s competitive lending environment, home equity loan closing costs are more than just line items, they’re a strategic lever. While individual fees may appear small, their cumulative impact on margins, scalability, and borrower conversion is significant.
For lenders covering closing costs out-of-pocket or competing on low-fee loan products, managing these expenses effectively can be the difference between maintaining profitability and falling behind.
Home equity loan closing costs include the third-party and administrative fees required to originate and close a loan, such as:
Quick Answer: Home equity loan closing costs typically range from a few hundred to a few thousand dollars per loan, depending on the property, loan structure, and vendors involved.
While these costs are lower than first-mortgage closings, they scale quickly across a growing portfolio.
Many lenders offer low- or no-closing-cost home equity loans to remain competitive. While attractive to borrowers, these programs shift the financial burden directly to the lender.
Even modest inefficiencies, slightly higher appraisal fees, redundant processes, or unoptimized vendor pricing—can erode margins when multiplied across hundreds or thousands of loans.
In a tightening market, lenders must balance:
Closing costs sit at the intersection of all three.
Borrowers are increasingly fee sensitive. When interest rates and loan terms are similar, closing costs often become the deciding factor.
From a lender perspective, lower fees can lead to:
Reducing friction at closing isn’t just a borrower benefit, it’s a growth strategy.
Lenders that successfully reduce or control home equity loan closing costs gain a clear edge. Marketing “low-fee” or “no-closing-cost” products is simple, compelling, and easy for borrowers to understand.
But achieving that advantage requires more than good intentions—it requires smarter infrastructure, vendor alignment, and process efficiency.
This is where many lenders struggle.
Individually, closing costs may seem insignificant. At scale, they are not.
Optimizing closing costs is one of the most practical ways lenders can improve performance without changing rates or credit policy.
Unitas works with lenders to streamline and reduce home equity loan closing costs through smarter processes, optimized vendor relationships, and technology-driven efficiencies.
By helping lenders control these expenses, Unitas enables them to:
Ready to Lower Your Closing Costs?
If your institution is looking for ways to reduce home equity loan closing costs, without sacrificing borrower experience, Unitas can help.
Contact Unitas today to learn how our solutions can help you lower costs, improve efficiency, and gain a competitive edge in home equity lending.