Yes, many home equity lines available today do
have prepayment penalties. However most penalties apply only if the home equity
line is both paid off and the account is closed to further cash draws or
advances. Therefore, if the home equity line is paid down to a zero balance,
but is left open to future draws against the account, the penalty would not
apply. In those instances where a home equity line borrower chooses to both pay
off and close the account, the prepayment penalty normally imposed amounts to
about $500.