Regions Bank: Review on Home Equity Loans and HELOCs

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Good for rate discounts
Regions Bank
Regions Bank
Good for rate discounts
Regions Bank
  • Products offered:
    Home equity loan, HELOC, rate-lock HELOC
  • Home equity loan terms:
    7,10, 15, or 20 years
  • HELOC terms:
    10-year draw period, 20-year repayment period
  • Maximum LTV:
    80%

NextAdvisor’s Take

Pros
  • No closing costs for home equity loans
  • Options to apply online, in-person, or over the phone
  • Accessible customer service options
Cons
  • Closing costs for HELOCs
  • Limited nationwide availability (15 states)
The Bottom Line

As one of the nation’s largest banking, mortgage, and wealth management service providers, Regions Bank serves customers across the South, Midwest, and Texas.  Regions offers home equity loans and HELOCs in 15 states. Its HELOC offerings also come with a rate-lock option for customers who want it. Home equity loans have loan amounts of $10,000 to $250,000 and HELOCs have line amounts ranging from $10,000 to $500,000.

For home equity loans and HELOCs, Regions offers rate discounts between 0.25% and 0.5% to those who elect to have their monthly payments automatically debited from a Regions checking account. For home equity loans, there are no closing costs. HELOCs, however, can have closing costs between $150 and $2,000, but Regions will pay these costs if the HELOC amount is $250,000 or less. 

You can apply for a Regions home equity loan or HELOC online, in-person, or over the phone. You’ll have to create an account with Regions to apply. Before you create an account, though, you can use the bank’s own rate calculator to estimate your rate and monthly payment amount. 

We like Regions because of the variety of application options it offers and the ease of applying online. Regions provides several ways to contact customer service, ensuring that customers can get questions answered quickly. Though Regions only offers its products in 15 states, it gives customers in these states the flexibility to choose between home equity loans, HELOCs, and rate-lock HELOCs.

Editorial Independence

As with all of our home equity loan and home equity line of credit (HELOC) lender reviews, our analysis is not influenced by any partnerships or advertising relationships. For more information about our scoring methodology, click here.

Regions Bank Full Review 

If you’re a homeowner in the South, Midwest, or Texas looking for a home equity loan or home equity line of credit (HELOC), Regions Bank could be a good option. This banking, mortgage, and wealth management service provider offers home equity products in 15 states starting at $10,000. Regions Bank makes our list of the best home equity loan and HELOC providers thanks to its variety of home equity products, easy application process, and flexible customer support. 

Regions Bank: Home Equity Loan Products

Regions Bank offers both home equity loans and home equity lines of credit (HELOCs). A home equity loan allows you to borrow a lump sum upfront, whereas a HELOC is a line of credit that you can continuously draw upon as needed. If you opt for a home equity loan with Regions Bank, you can choose a loan term of 7, 10, 15, or 20 years. If, on the other hand, you go with a HELOC, you’ll get a 10-year draw period and a 20-year repayment period. 

Regions Bank’s home equity loans have fixed rates, whereas its HELOCs come with variable interest rates. However, Regions offers a Loan in a Line option that allows you to lock in a portion or the entirety of your HELOC at a fixed interest rate during your draw period. The minimum loan amounts for both home equity loans and HELOCs start at $10,000, but home equity loans max out at $250,000 and HELOCs can go up to $500,000. You can have a maximum combined loan-to-value ratio (CLTV) of 80% on HELOCs and a maximum CLTV of 89% on home equity loans. 

Regions Bank does not charge closing costs for home equity loans, but you may have to pay closing costs if you borrow a HELOC. HELOC closing costs range between $150 and $2,000, but the bank will cover them if your HELOC amount is $250,000 or less. For lines greater than $250,000, the bank will cover up to $500 of closing costs. If you close your line within 24 months from opening, you’ll be charged for any third-party closing costs paid for by the bank.

Regions Bank customers can get rate discounts between 0.25% and 0.50% (based on their type of relationship with Regions) if they set up automatic payments from their Regions Bank checking account. 

Regions Bank: Home Loans Rate and Fee Transparency

Regions Bank provides a good deal of rate and fee transparency around its home equity products. On its website, you can read over various details of both loan types, including APRs and fees. In addition to information about closing costs, the bank also provides details about situational fees, such as over limit fees, late fees, and Loan in a Line conversion fees. 

This transparency around rates and fees can make it easier for homeowners to make good borrowing decisions. While finding a low interest rate is a priority, you also want to make sure a loan or HELOC doesn’t come with hefty fees, which could offset your savings from a lower rate. Knowing what to expect upfront can help you compare home equity products and find the best deal. 

Regions Bank also provides a rate calculator, which you can use to estimate your rate and monthly payment amount. To check your rates, you’ll need to create an account with the bank. 

You can apply for a home equity loan or HELOC online, in person, or over the phone. You can contact customer service over the phone or via email at directloanbyphone@regions.com. If you have a Regions Bank account, you can also send a secure message via the bank’s online banking portal or mobile app. 

Regions Bank Compared to Other Home Equity Lenders

Regions BankTD BankPNC Bank
Offers HELOCs?Yes: Standard HELOC, rate-lock HELOC Yes: Standard HELOC, Interest-only HELOC, Rate-lock HELOCYes: Standard HELOC, Fixed rate HELOC
Offers Home Equity Loans? Yes: terms of 7, 10, 15, or 20 years Yes: terms of 5, 10, 15, 20, or 30 yearsNo
States Available15 states (Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Texas)15 states (Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia)44 states (all states except Alaska, Hawaii, Louisiana, Nevada, Mississippi, South Dakota)
Loan Amount Range$10,000 – $250,000 for home equity loans, $10,000 – $500,000 for HELOCs Home equity loans start at $10,000, HELOCs start at $25,000$10,000 – $1 million
HELOC Loan Terms10-year draw period, 20-year repayment period10-year draw period, 20-year repayment period Repayment period of 5 to 30 years (5 to 20 years in Tennessee)
Max LTV80% on HELOCs, 89% on home equity loans89.99%89.9% (80% or 85% in some states)

How to Get the Best Home Equity or HELOC Rate  

While Regions Bank may offer the home equity loan or HELOC you’ve been looking for, it’s not your only option. Whether you want to shop around or you don’t live in one of the 15 states Regions Bank operates in, here are some tips for getting the best rate on a home equity loan or HELOC. 

Choose the Right Product

With a long list of lenders at your fingertips, you can start to narrow down your options by figuring out whether you need a home equity loan or a HELOC. Some lenders only offer one or the other, so knowing what you’re in the market for can help focus your search. 

Home equity loans are a type of installment loan that you pay off over time. You’ll get a lump sum upfront and pay it back with fixed monthly payments over five to 30 years. Home equity loans typically have fixed interest rates that stay the same over the life of your loan. 

HELOCs, on the other hand, are lines of credit that you can draw on as needed. You can borrow as much as you want (up to the credit limit), whenever you want during the draw period. You’ll only pay interest on what you borrow, not the entire line amount. Some HELOCs let you make interest-only payments during the draw period, which often spans 10 years. A typical repayment period is 20 years, during which you’ll pay back what you borrowed, plus interest. Rates are usually variable, but you might have the option to lock in a fixed rate on a portion or the entirety of your balance. 

Home equity loans may be preferable if you know the amount you need upfront, for example, if you’re using the funds to consolidate debt or pay for a single project. HELOCs offer more flexibility and may be a better fit for projects with variable or unpredictable costs, such as if you need to pay for ongoing home improvements. However, be aware that variable-rate HELOCs come with the risk of your interest rate — and by extension, monthly payment — rising unexpectedly if market interest rates rise. 

Shop Multiple Lenders 

It’s a good idea to shop around any time you’re getting a loan, and home equity products are no exception. Rates, terms, and products will vary by lender, so checking rates from more than one lender can help you find the best deal. Many lenders let you prequalify for a loan or HELOC with no impact on your credit score, so you can get a sense of your rates before you apply. If you do submit a full application, try to keep your loan shopping to a 45-day window so the credit bureaus will treat multiple hard credit checks as a single inquiry. 

Estimate Your Loan Costs 

Before you borrow, use a loan calculator to estimate your monthly payments and long-term loan costs. Consider the annual percentage rate (APR) rather than the interest rate alone, since APR is a more inclusive term that takes both interest and fees into account. Compare both monthly payments and long-term costs of borrowing to find an affordable loan. 

Only Borrow What You Need 

Some lenders allow a loan-to-value ratio of up to 80% or 90%, but that doesn’t mean you need to max out your home equity loan or HELOC. The loan-to-value ratio compares the amount of your loan to the value of your home. Even if you can borrow a large amount, that doesn’t mean you should. Over-borrowing against your home is risky and could leave you with negative equity, or owing more than your home is worth, if your house’s value drops. 

In addition, if you can’t make your monthly payments, you run the risk of losing your home through foreclosure. Before taking on debt, it’s always a good idea to come up with a plan for repayment and, if possible, rely on savings before turning to a loan.    

Improve Your Credit Score

Improving your credit score can also help you get the best rate on a home equity loan or HELOC. Lenders look at your credit score to assess your risk as a borrower and offer the lowest rates to borrowers with the best credit. On the FICO scoring model, a good credit score starts at 670 and a very good score starts at 740. 

Some steps you can take to improve your credit score include making on-time payments on loans, paying down debts, and reducing your credit utilization ratio. You can also order a free copy of your credit report from AnnualCreditReport.com. If you spot any errors, try disputing them to have them removed.