Two lines at the same advertised rate can cost you meaningfully different amounts, and the difference hides on one page most borrowers skim: the fee sheet. Before you sign anything, sit down with it and a highlighter.
Here's what to circle. The annual fee, often fifty to a hundred dollars just for keeping the line open. The origination and appraisal costs, which some lenders waive and others bury. The inactivity fee, charged when you don't draw often enough, which matters for anyone planning to hold the line mostly as a standby tool. Minimum draw requirements, where the lender obligates you to borrow a set amount at opening whether you need it or not. And rate floors, the fine print that says your variable rate can ride up with the market but will never follow it below a set number.
Watch out for early-closure recapture. Many lenders waive closing costs upfront, then claw them back if you close the line within the first two or three years. Reasonable enough from their side, but it means the free line isn't free if your plans change, say you sell the house or refinance inside that window. Know your recapture period before you sign, and write the end date somewhere you'll see it.
Why do fees matter so much here? Because this strategy often runs small working balances on purpose. Against a small average balance, a hundred dollars of annual fees can eat a real share of the interest the parking saved you. The same arithmetic that says a cheaper rate changes less than you'd think says a fee can change more than you'd think. Fees are flat. Small balances feel them hardest.
So when you're shopping lenders, compare fee sheets side by side, not just rates. Ask each lender the same five questions: annual fee, inactivity fee, minimum draw, rate floor, recapture period. The one with honest answers and small numbers is usually the better hub, even at a slightly higher rate.