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Regions Home Equity Loan December 2022

Currently, Regions offers both a home equity loan and a home equity line of credit (HELOC).
Rebecca LakeNov 6, 2022
Editor’s Note
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According to Bills.com
Home Equity LoanHELOC
Amount$10,000 – $250,000
Term7, 10, 15, and 20 years
Rates 5.50% – 13.00%
Min. Credit ScoreNone disclosed
Pros

Borrowers can easily apply for a home equity loan or HELOC online, or they can visit a branch if they prefer.

Regions covers closing costs for home equity loan borrowers and offers the same option to homeowners who are applying for a Regions HELOC. 

Regions offers borrowers multiple opportunities to qualify for interest-rate discounts, which can help reduce loan costs.

Cons

Regions only lends in specific states and home equity loans or HELOCs are not available nationwide. 

Closing must be completed at a branch location.

Texas borrowers do not have the option to access their HELOCs via debit car.

Regions is one of the nation’s largest providers of consumer and commercial banking services. Headquartered in Birmingham, Alabama, the bank primarily serves customers in the South (including Texas) and Midwest.In addition to bank accounts, Regions also offers mortgage loans. 

Does Regions Offer Home Equity Loans or HELOCs?

Regions offers mortgage purchase loans, home equity loans, and home equity lines of credit (HELOCs) to qualified borrowers. 

The Regions home equity loan is an installment loan that’s secured by a primary or secondary residence. These home equity loans offer low, fixed, interest rates with no closing costs. Borrowers must have at least $10,000 in equity to qualify for such loans. 

One of the main requirements for a Regions home equity loan is that the property must be located in a state where the bank has a branch. Eligible states include:

  • Alabama
  • Arkansas
  • Florida
  • Georgia
  • Illinois
  • Indiana
  • Iowa
  • Kentucky
  • Louisiana
  • Mississippi
  • Missouri
  • North Carolina
  • South Carolina
  • Tennessee
  • Texas

A Regions HELOC is also an option. The Regions HELOC is a revolving line of credit that features a variable interest rate. There’s no annual fee associated with the home equity line of credit and it’s possible to get a no-closing-costs option, too. 

Regions’ home equity loans and HELOCs can be used to cover a range of expenses. For instance, borrowers can use either one to consolidate debt, pay medical bills, or fund home improvements. With either type of borrowing, the home serves as collateral. 

In addition to home equity loans and HELOCs, Regions also offers cash-out refinance loans. Cash-out refinancing allows borrowers to replace their existing mortgage loan with a new loan, as well as withdraw their equity in cash at closing. 

Cash-out refinancing (“refi”) can be expensive if the new loan’s interest rate is higher than the previous mortgage’s interest rate. Borrowers may also pay closing costs for a cash-out refi if they’re not given the option to roll them into the loan. And cash-out fees apply to the entire loan amount, not just the cash that’s withdrawn. 

Personal loans are another way to borrow and they can be a reasonable alternative to home equity loans or HELOCs if the interest rate is comparable. A higher credit score is typically needed to qualify for the lowest rates on a personal loan. Regions offers secured and unsecured personal loans and lines of credit

Pro tip: Personal loans that use a home as security are just a different form of home equity loan.

Regions’ Home Equity Loan

Here are the details for Regions’ home equity loans:

  • Maximum loan-to-value (LTV) ratio is 89%; homeowners must have at least $10,000 in equity.
  • Interest rates range from 5.50% to 13.00%.
  • No minimum credit score requirement is disclosed, though borrowers with higher credit scores are more likely to be approved.
  • Minimum loan amount is $10,000, with a maximum loan of $250,000.
  • Loan term options include 7, 10, 15, and 20 years.
  • Regions pays all closing costs for the loan.
  • Borrowers can qualify for autopay rate discounts and Regions “relationship rate” discounts.
  • Loans must be closed at a branch.

Regions’ HELOC

Here’s how the Regions HELOC product compares: 

  • Maximum loan-to-value (LTV) ratio is 80%.
  • 0.99% APR 6-month introductory rate; after that, a variable APR ranging from 5.750% to 12.625% (as of September 2022).
  • Minimum credit score requirements are not disclosed.
  • Minimum HELOC amount is $10,000, with a maximum of $500,000.
  • Borrowers are subject to a 10-year draw period, with a 20-year repayment period.
  • Bank pays closing costs (optional).
  • Funds can be accessed via convenience checks, debit card, online, by phone, or at a branch.
  • No annual fee.
  • Borrowers can qualify for autopay rate discounts and Regions relationship-rate discounts.
  • Loans must be closed at a branch.

How to Apply for Regions’ Home Equity Loans

Homeowners have two ways to apply for a Regions’ home equity loan or HELOC. They can start the application process online or schedule an appointment to visit a Regions branch. 

To apply online, borrowers can log in to their Regions account, if they’re existing customers, or create a new application using their email. Here are the steps in the application process:

  • Enter personal information (name, address, date of birth, Social Security number).
  • Enter information about the home (address, mortgage balance, estimated value,  reason for applying).
  • Get home equity loan or HELOC quotes.
  • Upload supporting documentation to move forward with the application.

Borrowers can review their estimated rates and monthly payment before continuing. That information can be helpful for homeowners who are shopping around with different lenders to compare rates for home equity loans and HELOCs. 

The types of documentation that Regions needs to complete the application are similar to what’s needed for a purchase mortgage. The list of documents that may be requested includes:

  • Pay stubs or other income statements
  • W-2s
  • Tax returns
  • Bank statements
  • Cash-flow statements (or profit and loss statements) for self-employed individuals
  • Letter of explanation for borrowers with negative credit history

Those documents can be uploaded through the Regions’ online application portal or submitted in person if applying at a branch. 

Once Regions has the necessary information, the bank schedules an appraisal to determine the home’s value. Once approved for a home equity loan or line of credit, borrowers will have an opportunity to review closing documentation before signing. Regions pays the closing costs for its home equity loans and gives HELOC borrowers the same option. 

Regions’ Expert and Consumer Ratings

Expert reviews and consumer ratings can be helpful indicators of overall satisfaction with a bank and its products. We reviewed ratings from several different sources, including the Better Business Bureau and Trustpilot, to determine how Regions fares.

Based on our analysis, Regions earned an average 3.31 out of 5 stars. That rating is our opinion, not an exact science. 

Pros of Regions

  • Borrowers can easily apply for a home equity loan or HELOC online, or they can visit a branch if they prefer.
  • Regions covers closing costs for home equity loan borrowers and offers the same option to homeowners who are applying for a Regions HELOC. 
  • Regions offers borrowers multiple opportunities to qualify for interest-rate discounts, which can help reduce loan costs. 

Cons of Regions

  • Regions only lends in specific states and home equity loans or HELOCs are not available nationwide. 
  • Closing must be completed at a branch location.
  • Texas borrowers do not have the option to access their HELOCs via debit card. 

Alternatives to Regions

Don’t see what you want here? Other lenders offer home-equity products that might be better for you. Remember to compare programs and pricing to get a good deal.