So I just closed on a pretty decent HELOC deal from Citibank. Prime-4.01% for 6 mos, then P-.5% thereafter.

Only catch is an early closure fee (equal to their closing costs paid by them) if closed within 3 years of closing. In my case, it's a pretty sizeable HELOC, so given the discounted rate I'd "break even" after 1-2 mos.

My beef w/ them plays out as follows:

Several occasions up until closing I was told that their lender-paid closing costs that would be stipulated @ closing would be $679 (ie, this would be the penalty I'd later pay for early closure), which equates to "breakeven" after a merely 1 month.

Three times I requested a GFE and never received one (somehow I doubt it got lost in the mail 3 times)

At closing, whadda ya know, the closing costs are like $1175. Even after getting a supervisor on the phone (call got reverted back to U.S. from India) they wouldn't budge, explaining that closing costs are "only an approximation"

Seems like $1175 is not approximately $679 under even the laxest of standards

So, on one hand I still have a decent deal. On the other, relative to what I thought I was getting, it's like I just lost $500. (I still have every reason regardless to refinance on a new promo HELOC w/ somebody else in 6 mos.)

I doubt there's little I can do to salvage things. I suppose I have 3 business days to cancel, but since that's done via fax it's not like anything can be rescued. If I fax the cancellation, the deal will be off... right?

Only thing I can think of is if & when I close the thing say 6 mos hence I can attempt to recover the extra $500 by reading them the riot act, filing w/ regulators, small claims court. Since I never got the GFE (really!) that could either help or hurt me (I even asked / offered to pick one up @ branch w/ no luck).

Any other angles?

I just can't believe they think it's OK to be this sloppy.

They had to make up on the teaser rate somehow.

Are these closing costs a state-specific thing? I've never paid one penny in closing costs on a HELOC.

delete

I got the same deal... my closing costs were $375 as stated in the contract.

What OP is referring to is that is you cancel HELOC (find a better deal out there and move your money) they it says you have to reimburse lender for the closing costs. The closing costs were originally advertised to be roughly $350 but may vary. BTW, I never got a GFE from them, don't think that HELOCs will give you a GFE but I've only had experience with 2.

OP - in the state where you live, are there county/state recording fees? Maybe the closing costs have that included?

Whether to cancel or not - depends on how much you've borrowed and if you think you will really close that line within 36 months. If your HELOC draw amount is huge, then i guess you would jump for a Prime -.75% deal in the future.

You've signed the papers already right? That is legally binding. I would try to call them back before the 3 days are over and make headway on this now.

this may be a little off topic, but we did apply for the HELOC at citibank at prime - 4.01% x6months. The early closure fee isn't such a problem for us since it's a great deal.

But what we're worried about is how long it takes for them to approve..the whole process before we get to draw from the credit line.
We applied about two weeks ago and their reason for the delay is that they need to verify our employment. But all they need to do is call a number and it'll be done within 5 minutes.

I was wondering what kind of experience did you have with them?
How good are they on scheduling the closing...do they actually come to your home for that?
Thanks in advance.

I do not think banks send out a GFE for HELOCs.

ccualumni said:I do not think banks send out a GFE for HELOCs.

That I requested 3x w/o receipt corroborates that. That instead they told me 3x they'd be sending speaks to some degree of incompetence on their part.

I don't think you even read the OP's OP.