Regions Bank is a full-service financial institution that’s headquartered in Birmingham, Alabama. It was founded in 1852 and survived the Great Depression. As the years continued, Regions Bank expanded into the consumer and business banking provider that it’s known as today.
It has about 1,500 branches and 2,000 ATMs across 15 states in the South and Midwest. Regions Bank offers a suite of personal and business banking products and services, including a home equity loan and a home equity line of credit (HELOC).
Regions Bank snapshot
|Loan types offered||Home equity loan, HELOC|
|APR range||Home equity loan: Starting at 3.00% (with autopay)
HELOC: 0.99% introductory annual percentage rate (APR) for six months (3.75% to 10.63% variable thereafter)
|Loan amount range||Home equity loan: $10,000 to $250,000
HELOC: $10,000 to $500,000
|Minimum credit score required||Not specified|
|Repayment terms||Home equity loan: 7, 10, 15 or 20 years
HELOC: 30 years (10-year draw period, and then 20 years for repayment)
|Average time to approval||Not specified|
Whether you’re an existing customer or thinking of applying for home equity financing from Regions, its home equity products offer a few benefits to consider.
- Competitive interest rates: A Regions home equity loan offers a fixed rate as low as 3.00 percent APR when eligible customers enroll in autopay. For HELOC borrowers, the bank is offering an introductory 0.99 percent APR for the first six months for eligible customers.
- No closing costs: There are no closing costs for home equity products up to $250,000. For HELOCs that are greater than $250,000, the bank pays for up to $500 in closing costs.
- Flexible borrowing amounts: Borrowing minimums and limits are suited for customers who need access to a small amount, or need six-digit home equity financing to tackle a large project or anticipated expense.
- Fixed-rate HELOC option: Regions Bank’s HELOC product offers a Loan in a Line (LNL) feature that lets you secure a fixed rate for a portion or all of your owed balance. This option helps you always know how much your monthly payment is without surprises. Terms are up to 15 years, depending on your state.
Although the bank offers a handful of home equity benefits, there are a few drawbacks to consider before applying with Regions Bank.
- High interest rates for bad credit. Although Regions Bank offers competitive rates to qualified borrowers with strong credit, home equity rates for applicants with lackluster credit are higher than average.
- Limited HELOC term option. Borrowers are limited to a 30-year term with a 10-year draw period.
Types of fees charged
Regions Bank pays for all closing costs on home equity loans and HELOCs up to $250,000. For HELOCs greater than $250,000, the bank pays up to $500 in closing costs. Regions will apply any closing costs it paid to the HELOC account if your credit line is terminated within 24 months of activation.
The bank charges an over limit fee of $29 per incident, a $15 returned check fee and a 5 percent fee for any late payments. Late fees range from a minimum of $29 up to $100; in Texas the late fee is $15. If you’re interested in the LNL HELOC option, Regions Bank charges a $100 conversion fee.
Loan products offered
Customers of Regions Bank can choose between two home equity products: a home equity loan and a HELOC.
Home equity loan
Its home equity loan is available for amounts starting at $10,000 up to $250,000. The bank offers repayment terms of 7, 10, 15 or 20 years at a fixed rate starting at 3.25 percent APR. However, eligible borrowers can receive a rate as low as 3.00 percent APR with autopay. Interest rates are fixed throughout the loan term, and there are no closing costs.
The bank’s HELOC is a variable-rate line of credit in amounts of $10,000 to $500,000 over a 30-year term. Borrowers can draw from the account during the first 10 years, with the remaining 20 years for repayment. The bank will pay closing costs entirely for lines up to $250,000 and pay up to $500 for lines exceeding $250,000.
Borrowers can secure an introductory fixed rate of 0.99 percent APR for the first six months. The HELOC will then be charged at a variable interest rate afterward. Customers who want a fixed rate on their HELOC can convert to Regions’ LNL option for $100.
How to qualify for a home equity loan with Regions Bank
Qualifying for a Regions Bank home equity loan or line of credit depends on a few factors: your credit score, loan-to-value (LTV) ratio and existing debt and the collateral used to secure the loan.
Home equity loan
Regions requires that the collateral for the loan be a primary or secondary residence within a state that the bank serves. Borrowers must also have a minimum of $10,000 in equity on the property.
Additionally, the bank requires an LTV of up to 89 percent, and the loan must be a first or second lien on the property.
Collateral requirements for HELOC borrowers are similar to those for home equity loan customers. HELOC applicants must provide a first or secondary lien interest on the property that’s used as collateral for the loan.
The property must have at least $10,000 equity, and be a primary or secondary residence within a state with a Regions Bank location. The required LTV for HELOCs is up to 80 percent.
How to get started
If you’re ready to apply for a Regions Bank home equity product, you can do so in a few ways:
- Online: Visit the home equity page on the Regions Bank website to submit an online application. Click on “Apply Now” to get started.
- Over the phone: Call 1-888-462-7627 to speak to a representative. Hours are from 6 a.m. to 7 p.m. Monday through Friday and 8 a.m. to 2 p.m. on Saturday.
- At a branch: Visit your nearest Regions Bank to speak to a bank associate and apply in person.
If you’re approved, you’ll need to visit a branch to close your loan.
How Bankrate rates Regions Bank
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