# What information must my bank give me before I sign a home equity line of credit? - Jurisdiction: United States - Practice area: Tenancy Law - Published: 2026-10-23 - Last updated: 2026-10-23 - Canonical: https://lawasked.com/us/tenancy-law/information-must-my-bank-give-me-before-i ## Question I am currently living in Ohio and am looking into getting a home equity line of credit (HELOC) to pay for some major kitchen renovations. I met with a loan officer from my local credit union last Tuesday, and they gave me a verbal estimate of the interest rates. However, as I was looking over the preliminary paperwork they sent to my email yesterday, I realized I am really confused about how the interest rate is actually calculated. Since the rate is variable, I don't know if it's tied to a specific index or how much it could actually jump in a single year. I also want to make sure I understand all the extra costs, like application fees or what the appraiser might charge, because I don't want any surprises on my first paycheck after the loan starts. Most importantly, I need to be 100% clear on the fact that my house is being used as collateral. If I run into financial trouble and can't make the payments, I need to know exactly what the risks are regarding my home. What specific details and warnings am I legally entitled to see in writing before I officially sign this contract and commit my house to the bank? ## Summary Yes, your credit union is legally required to provide you with specific written disclosures regarding your variable interest rate, all associated fees, and the risk to your home before you sign the contract. These disclosures must be provided at the time they give you the application. ## Analysis Because your HELOC is an 'open end consumer credit plan' (a type of revolving credit line) that is 'secured by the consumer’s principal dwelling' (meaning your home is used as collateral to guarantee the loan) [cite:us-title15-consumer-credit-sec1637a], the law requires very specific written information. Regarding your confusion about interest rates, the bank must provide a 'description of the manner in which such rate will be computed' and a 'description of the manner in which any changes in the annual percentage rate will be made' [cite:us-title15-consumer-credit-sec1637a]. This must include the specific 'index or margin to which such changes in the rate are related' and a 'source of information about any such index' [cite:us-title15-consumer-credit-sec1637a]. To address your concern about how much the rate could jump, they must state the 'maximum amount by which the annual percentage rate may change in any 1-year period or a statement that no such limit exists' [cite:us-title15-consumer-credit-sec1637a]. To prevent surprises regarding costs, the bank must provide an 'itemization of any fees imposed by the creditor in connection with the availability or use of credit under such plan, including annual fees, application fees, transaction fees, and closing costs' [cite:us-title15-consumer-credit-sec1637a]. They must also provide an 'estimate, based on the creditor’s experience... of the aggregate amount of additional fees that may be imposed by third parties (such as governmental authorities, appraisers, and attorneys)' [cite:us-title15-consumer-credit-sec1637a]. Most importantly, regarding your home, the bank must provide a 'statement that... any extension of credit under the plan is secured by the consumer’s dwelling; and... in the event of any default, the consumer risks the loss of the dwelling' [cite:us-title15-consumer-credit-sec1637a]. This warning must be presented clearly and must 'precede all of the other required disclosures' [cite:us-title15-consumer-credit-sec1637a]. It is uncertain if your specific credit union has already provided these via the email you received, as the law requires these disclosures to be provided 'at the time the creditor distributes an application' [cite:us-title15-consumer-credit-sec1637a]. ## Statutory citations - Consumer Credit Protection Act (Truth in Lending, Fair Credit Reporting, Fair Debt Collection), 15 U.S.C. § 1637a - Disclosure requirements for open end consumer credit plans secured by consumer’s principal dwelling [in force] (https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1637a) > a statement that... any extension of credit under the plan is secured by the consumer’s dwelling; and... in the event of any default, the consumer risks the loss of the dwelling. - Consumer Credit Protection Act (Truth in Lending, Fair Credit Reporting, Fair Debt Collection), 15 U.S.C. § 1637a - Disclosure requirements for open end consumer credit plans secured by consumer’s principal dwelling [in force] (https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1637a) > a description of the manner in which any changes in the annual percentage rate will be made, including... any index or margin to which such changes in the rate are related; and... a source of information about any such index - Consumer Credit Protection Act (Truth in Lending, Fair Credit Reporting, Fair Debt Collection), 15 U.S.C. § 1637a - Disclosure requirements for open end consumer credit plans secured by consumer’s principal dwelling [in force] (https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1637a) > An itemization of any fees imposed by the creditor in connection with the availability or use of credit under such plan, including annual fees, application fees, transaction fees, and closing costs --- General information only, not legal advice. See https://lawasked.com/disclaimer