What Are the Closing Costs for the Wealth Builder HELOC?

Like any first mortgage, the Wealth Builder HELOC involves closing costs. These vary based on loan amount, property location, and the specific services required, but here is a general overview of what California borrowers should expect.

Typical Closing Cost Categories

• Origination fee: Charged by Lendia or the wholesale lender for processing and underwriting the loan
• Appraisal fee: A full interior appraisal is required; typically $500–$900 for standard properties in California
• Title insurance: Lender’s title policy is required; owner’s policy is optional but recommended
• Escrow/settlement fee: Charged by the title or escrow company handling the closing
• Recording fees: County recording fees for the deed of trust
• Prepaid items: Interim interest from closing to first payment, and any required initial escrow deposits

For Loans Above $2,000,000

Properties securing loan amounts above $2,000,000 require two independent appraisals, which increases the appraisal cost accordingly.

No Prepayment Penalty

The Wealth Builder HELOC does not carry a prepayment penalty. You can pay down or pay off the balance at any time without additional charges — which is essential given that accelerated payoff is a core feature of the product.

Comparing to a Traditional Mortgage

Closing costs on the Wealth Builder HELOC are generally comparable to a traditional first mortgage refinance. Your Loan Estimate will itemize all costs before you commit to the loan.

Budgeting beyond the fee list

For a purchase, California buyers typically pay roughly 2%–5% of the price in closing costs. On an illustrative example of a $1,000,000 purchase, that is about $20,000 to $50,000, which includes lender, title, escrow, and prepaid items. Your own figures will differ, and the Loan Estimate itemizes them.

Reading the Loan Estimate

Federal disclosure rules sort fees into tolerance groups. Certain lender charges cannot increase at closing at all. Others, such as recorded government fees and some third-party services, can rise by no more than 10% in total. A third group, including items you shop for yourself or prepaid amounts, can change. If a fee jumps, ask which group it falls in.

Prepaid items and escrow deposits

• Prepaid interest: covers the days from closing to the end of that month, so the closing date affects the figure.
• Property taxes: California is roughly 1% of assessed value plus local assessments. On a $1,000,000 assessed value, that is about $10,000 a year before local assessments, so initial escrow deposits can reach several thousand dollars.
• Insurance: the first year’s homeowner’s premium is usually paid at or before closing.

Ways to lower cash needed

• Choose a closing date late in the month to reduce prepaid interest.
• Shop optional services, such as the owner’s title policy, where the Loan Estimate allows it.
• Ask whether a seller credit applies on a purchase, within program limits.

Questions to ask the closing team

Ask for the estimated settlement statement a few days before signing, and ask your escrow officer how the payoff and any interim interest were calculated. Small timing differences, such as a closing on the 28th versus the 3rd, change the prepaid figures.

Frequently asked questions

When do I see the final costs?

A Loan Estimate is delivered within 3 business days of application, and the Closing Disclosure arrives at least 3 business days before closing. Review both, and ask us about any difference.

Does an appraisal on a larger loan cost more?

Yes. Loans above $2,000,000 require two appraisals, so the appraisal charge is higher.

Is the owner’s title policy worth buying?

The lender’s policy protects the lender. The owner’s policy protects you, and is recommended because it covers your ownership interest. A title officer can explain the coverage.

Related guides

• Loan Estimate and Closing Disclosure
• How to apply
• Saving for closing costs
• Using the line for a purchase

Quick recap

• Compare your Loan Estimate with the Closing Disclosure line by line; some fees cannot increase at all and others only within limits.
• Escrow deposits and prepaid interest can add up, so budget beyond the lender fees.
• On a purchase, California closing costs often run roughly 2%–5% of the price.