Regions Bank home equity review
This lender offers no closing cost home equity loans and HELOCs, but it’s only available in select states.
Regions Bank offers no closing cost home equity loans and HELOCs with rate discounts up to 0.5% if you set up auto-payments with a linked checking account. But it’s only available in select states, and its checking accounts aren’t free.
|Loan products offered||Home equity loan, HELOC|
|Minimum credit score||Home equity loans: 640|
|APR range||Home equity: 3.25% to 11.625%|
HELOC: 3.75% to 10.63%
|Repayment terms||Home equity: 7, 10, 15 or 20 years|
HELOC: 30-year term (10-year draw and 20-year repayment period)
|Loan limits||Home equity: $10,000 to $250,000|
HELOC: $10,000 to $500,000
|State availability||AL, AR, FL, GA, IA, IL, IN, KS, LA, MO, MS, NC, OH, SC, TN, TX|
Pros and cons of Regions Bank
- No closing cost options. Regions Bank doesn’t charge closing costs on its home equity loans, and no closing cost options are available on HELOCs up to $250,000 or less.
- Low introductory rate HELOCs. Regions Bank offers HELOCs with a 0.99% introductory APR for six months.
- Rate discounts available. Shave 0.25% to 0.5% off your home equity or HELOC interest rate by setting up automatic payments from a linked Regions Bank checking account.
- HELOC can be converted to a fixed rate. While most HELOCs are adjustable-rate loans, Regions Bank allows you to convert all or part of your HELOC to a fixed-rate loan. The conversion fee is $100.
- Checking accounts have requirements to waive fees. While you can reduce your rate by up to 0.5% by making auto-payments with a linked checking account, these accounts attract fees unless you meet certain requirements, such as maintaining minimum balances or making a set number of purchases with your debit card each month.
- Negative customer reviews. Current and previous banking customers have complained about billing errors, outdated banking policies and funds being on hold for days on end.
- High interest rates for some borrowers. Lower credit borrowers may end up paying a high interest rate that can go over 11% on home equity loans and over 10% on HELOCs.
- Limited state availability. Regions Bank only offers home equity loans and HELOCs in a limited number of states.
What types of fees does Regions Bank charge?
Regions Bank doesn’t charge closing costs on its home equity loans or HELOCs that are $250,000 or less. For HELOCs greater than $250,000, the bank will pay up to $500 toward your closing costs.
However, if your line is terminated or you close it within 24 months from when you opened it, you’ll be charged the third-party closing costs paid by Regions Bank on your behalf. Your home equity loan or HELOC may also be subject to these fees:
- Over limit fee: $29
- Late Fee: 5% of the payment amount ($29 minimum, $100 maximum/$15 in TX)
- Returned check fee: $15 in all states
Regions Bank requirements
Eligibility requirements vary by loan program. To find out if you’re eligible for a Regions Bank home loan, visit the company’s website. Basic eligibility for a mortgage with the company includes:
- Two years’ history of employment
- FICO credit score of 640 or higher
- No history of bankruptcy in the past two years
- DTI ratio of less than 43%
Be prepared to provide the following documents with your loan application:
- State-issued ID and Social Security card
- Residence history for the past two years
- Landlord information for the past two years, if applicable
- Employment history for the last two years
- Most recent two years’ W-2s and your two most recent pay stubs
- Two most recent bank statements
- Profit and loss (P&L) statements and balance sheets for the last two years for self-employed persons
How to apply for a home equity loan with Regions Bank
Here’s how to start an online application for a home equity loan or HELOC at Regions Bank. If you have questions about your application, call the home equity line at 800-986-2462.
- Go to the Regions Bank’s website and select the Personal tab from the top menu. Under this tab, select Borrow and then Home Equity.
- Choose from either Home Equity Loan or Home Equity Line of Credit and select Apply Now.
- Begin the online application by selecting Get Started. Enter your name, contact information, date of birth, Social Security number, home address and marital status.
- Enter your property information, current mortgage information and how much you want to borrow.
- Answer the questions about your employment, income and other personal information.
- Verify your identity with a state-issued ID.
- Answer the demographic questions and consent to the disclosures and submit the application, which will require a hard credit check.
- Wait to be contacted by a loan officer about the next steps.
What types of home equity products does Regions Bank offer?
Regions Bank offers the following home equity products:
- Home equity loan. This home equity loan is a no closing cost, fixed-rate installment loan with loan limits ranging from $10,000 to $250,000. Current rates are 3.25% to 11.625% APR and loan terms are available for 7, 10, 15 or 20 years.
- HELOC (Home Equity Line of Credit). An adjustable-rate, revolving line of credit with limits ranging from $10,000 to $250,000. Offers an 0.99% APR introductory rate for six months, and rates of 3.75% to 10.63% afterward. The bank pays closing costs on lines of $250,000 or less and up to $500 for lines over $250,000.
Other mortgage products offered by Regions Bank
Regions Bank also offers these types of mortgages:
- First-time homebuyer loans. Regions Bank offers fixed-rate mortgages with lower closing costs or lower down payment requirements for new homebuyers.
- Renovation and repair program. Allows you to borrow for renovation or repairs with either a new mortgage or refinance loan.
- Construction. This loan type enables you to roll a construction loan and a permanent mortgage into a single loan with one set of closing costs.
- Mortgage refinance. Refinance your current mortgage and replace it with a new one with better terms to lower your interest rate, remove private mortgage insurance or get cash out for other needs.
How Regions Bank’s home equity products compare to other lenders
Compared to other lenders, Regions Bank offers a solid menu of competitively priced home equity products to help homeowners in a variety of situations. While some lenders only offer mortgage refinancing, Regions Bank offers home equity loans, HELOCs and mortgage refinancing options with both fixed and adjustable rates as low as 3% with discounts and varying term lengths.
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Regions Bank reviews and complaints
As of August 2021, Regions Bank has a 3.2 out of 5 rating on Trustpilot from 143 customers and a 2.84 out of 5 customer rating on the Better Business Bureau (BBB) website from 196 customers. Regions Bank has been accredited with the BBB since 1956 and has an A+ business rating, but hundreds of complaints don’t paint a positive picture for the company.
Overall, customer reviews are mixed. While some customers report positive experiences, others complain of poor service, excessive fees and incorrect billing on loans. While many complaints are related to banking products, its 0.25% to 0.5% rate discounts are only available if you pay your home equity loan with a Regions Bank checking account.
If you’re after a no closing cost home equity loan or HELOC that offers competitive rates with discount options, Regions Bank may be a good choice. But many lenders offer no closing costs on their home equity products. And going by previous customer reviews, Regions Bank isn’t known for great customer service. If you’d like to see what other lenders have on offer, compare more home equity lenders to find the right one for you.