Answers
NO. ALL banks charge this type of fee.
Simple example of borrowing from equity to fuel consumption
Is a Home Equity Line of Credit Right for You? | DoItYourself.com
A home equity line of credit is like using the equity in your home as a credit card to do things like pay medical bills, complete improvements, go to college, or whatever you wish to use the money for. The amount of money you can borrow against your home depends on its market value, as well as how much you still owe on the mortgage and how much equity you have left after both those aspects are taken into consideration.
Money InvolvedHomeowners are typically approved for a home equity line of credit that is only a percentage of the value of the home. A typical value is somewhere between 75 percent and 90 percent, depending on the homeowner’s credit report. If your home’s market value is $100,000, and they allow an 80 percent line of credit, you have $80,000 left of potential value to borrow against. However, if you still owe $40,000, you can only borrow against the remaining $40,000 equity. This line of credit is not unlike the maximum amount a person can charge on their credit card. And, just like a credit card, you aren’t allowed to go over that maximum amount.
...News
Banks Loosen Purse StringsWall Street Journal - Jan 15, 2011
New York TimesHome-equity lending, which dried up when home prices fell, is on the comeback trail. Originations of home-equity lines increased in October, JPMorgan's Biggest Cost? Pay, Not MortgagesJPMorgan Chase's profit jumps 47 percent in 4Qall 953 news articles »
The Associated Press - Jan 19, 2011
In the economic mess that followed, loan defaults increased sharply for all types of consumer loans — mortgages, home equity loans, and credit cards. and more »TheStreet.com - Jan 21, 2011
Higher short-term rates would impact credit cards, home equity lines and increase net- interest margin expansion. Stifel Nicolaus analysts have determined and more »TMCnet - Jan 19, 2011
The companys loan portfolio comprises commercial and residential mortgage loans, multifamily loans, home equity loans and lines, construction loans, and more »RTT News - Jan 19, 2011
In economic news, the New York Federal Reserve's regional manufacturing survey showed that conditions in the manufacturing sector of the region improved and more »CTV.ca - Jan 14, 2011
In crisis, Iceland asked US for 'preferably' $1-billionWe think that tighter requirements for [home equity lines of credit] will be the preferred approach, as that would tackle the fastest growing component of and more »Business Wire (press release) - Jan 19, 2011
Fitch Special Report: U.S. RMBS Disclosure of 4Q'10 Non-Prime Loan Pool Non-prime residential mortgage loan pools may include the following: Alternative A (Alt-A), Subprime, Closed-End Second Lien, Home Equity Lines-of Credit and more »