Annual Membership Or Maintenance Fee - An annual charge for having the line of credit available. Charged regardless of whether or not the line is used.  Annual Percentage Rate (APR) - The cost of credit on a yearly basis expressed as a percentage.  Application Fee - Fees that are paid upon application. May include charges for property appraisal and a credit report.  Balloon Payment - A lump-sum payment that may be required when the plan ends.  Cap - A limit on how much the variable interest rate may increase during the life of the plan.  Closing Costs - Fees paid at closing, including attorneys fees, fees for preparing and filing a mortgage, fees for title search, taxes, and insurance.  Credit Limit - The maximum amount that may be borrowed under the home equity plan.  Equity - The difference between the fair market value (appraised value) of the home and the outstanding mortgage balance.  Index - Published rate that serves as a base for the interest rate charged on a home equity line and also as the base for rate changes used by the lender.  Interest Rate - The periodic charge, expressed as a percentage, for use of credit.  Margin - The number of percentage points the lender adds to the index rate to determine the annual percentage rate.  Minimum Payment - The minimum amount that you must pay (usually monthly) on your account. Under some plans, the minimum payment may cover interest only; under others, it may include both principal and interest.  Points - One point is equal to 1 percent of the amount of the credit line. Points must usually be paid at closing and are in addition to monthly interest.  Security Interest - An interest that a lender takes in the borrower's property to ensure repayment of a debt.  Transaction Fee - A fee charged each time you draw on your credit line.  Variable Rate - An interest rate that changes periodically in relation to an index. Payments may increase or decrease accordingly.