How to Open a Bank Account Online

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Disclosures from lenders

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The federal Truth in Lending Act requires lenders to disclose the important terms and costs of their home equity plans, including the APR, miscellaneous charges, the payment terms, and information about any variable rate feature.

In general, neither the lender nor anyone else may charge a fee until after you have received this information. You usually get these disclosures when you receive an application form, and you will get additional disclosures before the plan is opened.

If any term (other than a variable rate feature) changes before the plan is opened, the lender must return all fees if you decide not to enter into the plan because of the change.

When you open a home equity line, the transaction puts your home at risk. If the home involved is your principal dwelling, the Truth in Lending Act gives you 3 days from the day the account was opened to cancel the credit line.

This right allows you to change your mind for any reason. You simply inform the lender in writing within the 3 day period.

The lender must then cancel its security interest in your home and return all fees including any application and appraisal fees paid to open the account.

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