When I closed on my Phoenix AZ home in 2002, I indicated that I did NOT want an "equity LOC" as I did not intend to borrow more. I was told that it is "standard" to go ahead and set up the LOC "just in case".
At closing, I was charged $50. as a "set up" fee!!(and yes, I DID sign, and it was not mentioned or reviewed at closing).
I completed a Refi today, and learned that there is a $350. charge to "deactivate" the LOC, even though I never accessed or activated it. I was told that if I "deactivate" in less than 5 years that the fee is charged (in FINE PRINT, of course).
As a side note, I was grossly OVERCHARGED at the closing for Countrywide, and the overcharges were factored into the loan amount. Then they REFUNDED me nearly $5,000. AFTER closing and AFTER I called to question it.
I was overcharged hundreds of dollars for "insurance and taxes" by Countrywide. They made interest on the "escrow", and only refunded each time that I called it to their attention.
What a RIP-OFF!!!
I will never use them again, and I will NOT recommend them to anyone.
Rachael
Phoenix, Arizona
U.S.A.