Regions Bank home equity review
- Minimum credit score
- Home equity loans: 640
HELOCs: 640 - State availability
- Only available in: AL, AR, FL, GA, IA, IL, IN, KY, LA, MO, MS, NC, SC, TN, TX
Summary
A lender that offers low introductory APRs and no closing costs for home equity products.
Regions Bank is a national bank that offers home equity loans and home equity lines of credit (HELOCs) to homeowners interested in tapping into their equity. Regions Bank offers a six-month introductory 0.99% APR for qualifying HELOCs and 4.5% on home equity loans to deposit account holders with autopay.
Details
Features
| Loan products offered | Home equity loan, HELOC |
| Minimum credit score | Home equity loans: 640 HELOCs: 640 |
| APR range | HELOC: Introductory 0.99% APR for first 6 months, then 3.75% to 18%. Home equity loans: 6.25% to 13.875% |
| Repayment terms | Loans: 7-, 10-, 15-, 20-year terms HELOC: 10-year draw and 20-year repayment |
| Loan limits | Not stated |
| State availability | Only available in: AL, AR, FL, GA, IA, IL, IN, KY, LA, MO, MS, NC, SC, TN, TX |
Our take on Regions Bank
Regions Bank offers several benefits with its home equity lending. Its HELOC comes with an enticing introductory APR. Additionally, Regions Bank pays all closing costs for loans and lines of credit up to $250,000, which helps you keep more money in your wallet while securing funds for home renovations or other big life expenses.
The lender also offers a Loan in a Line feature on its HELOC, which allows you to convert all or a $5,000 or greater portion of your outstanding balance into a fixed-rate loan. You choose from 3-, 5-, 7-, 10- or 15-year repayment terms, and if you exercise this option in the first 30 days of opening your HELOC, Regions will waive the $100 conversion fee.
Despite the benefits of home equity lending, Regions Bank is not the best choice for everyone. Although it’s a national bank with hundreds of locations across the US, the home you intend to use as collateral must be in a state in which Regions supports a bank branch.
Special discounts
This lender offers a 0.25% discount if you have a Regions Bank deposit account and activate automatic payments on your home equity loan or HELOC.
Pros and cons
Pros
- Low six-month intro APR on HELOCs
- $0 closing fees on HELOCs and home equity loans up to $250,000
- Fixed-rate option for HELOCs
- Interest rate discounts for allowing automatic payments
Cons
- Limited state availability
- Closing fees may apply for HELOCs and loans above $250,000
- Required $4,000 minimum draw if you live in Texas
Requirements are standard
Regions Bank doesn’t provide clarity on the minimum credit score needed for a HELOC or home equity loan approval. However, credit reporting agency Experian recommends a minimum credit score of 680 for HELOC or home equity loan consideration.
The lender requires that you have at least $10,000 in home equity and a maximum loan-to-value (LTV) ratio of 80%, including your loan or line of credit.
Rates and fees are a boon over competitors
Regions Bank offers two standout benefits: low introductory rate for HELOCs and home equity loans, and no closing fees.
Regions Bank’s six-month introductory APR of 0.99% is considerably lower than competitor rates, which typically start at 3.49% for HELOCs. Savvy buyers and investors can save a bundle on interest by taking advantage of this intro period.
You won’t pay closing fees for a Regions Bank home equity loan or HELOCs of up to $250,000, helping you to cut out the 3% to 6% in fees you’ll find at competitors. If your loan or HELOC are greater than $250,000, then Regions Bank will cover $500 of your closing costs.
Regions estimates closing costs may range between $150 and $2,000. However, if you close your HELOC within the first 24 months, you will be responsible for all closing costs paid by Regions Bank.
The bank charges $100 each time you exercise the Loan in a Line fixed-rate option on its HELOC but waives that fee if you do it within the first 30 days of opening your line of credit.
Regions Bank reviews are good
As of July 2022, Regions Bank earns an A+ from the Better Business Bureau based on its internal criteria and gets pretty high ratings from customers for a bank its size. The bank earns 3.11 stars out of 5 from customers, which is a high rating for a bank as large as Regions. It also racked up 987 complaints over the past three years — 341 of them in the last 12 months alone.
The bank earns 2.4 stars at Trustpilot, with 177 customer reviews logged. Of those reviews, 59% of consumers say they had an “excellent” experience with Regions — again, high for a large bank — while 36% report a “bad” experience, citing issues with bank practices, ATMs, fees and customer service. Positive reviews center on customer service, online services and bank practices.
How to apply for a home equity loan with Regions Bank
Prequalify for a home equity loan or HELOC online in minutes with your household income, the market value of your home and the amount you owe on your mortgage.
Prequalification isn’t the same as a full loan approval, though it’s a first step. The review process for prequalification is lengthy. It can take up to two weeks from when you applied before you receive a response.
Documentation
Once your application moves into the underwriting phase for full approval consideration, you’ll need to provide additional documents and information that include:
- Driver’s license or other government ID.
- Social Security number and date of birth.
- Two years of tax returns.
- Proof of any liens.
- Any outstanding debt.
- Property tax bill.
- Mortgage statement.
- Proof of homeowner’s insurance.
Other home loans from Regions Bank
Other mortgage products offered by Regions Bank include:
- First-time homebuyers loans.
- Fixed-rate mortgages.
- Adjustable-rate mortgages.
- FHA loans.
- VA loans.
- Construction-to-permanent home loans.
- Home refinance loans.
Compare interest rates for home equity loans, HELOCs and cash-out refinancing
Use our tool to get personalized estimated rates from top lenders based on your location and financial details. Select whether you’re looking for a Home Equity Loan, HELOC or Cash-Out Refinance.
If you selected a home equity loan or HELOC, enter your ZIP code, credit score and information about your current home to see your personalized rates.
In the Cash-Out Refinance tab, select Refinance and enter your ZIP code, credit score and other property details to see what you might qualify for.
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