Regions Bank: 2024 Home Equity Review

Benefits

• At Regions Bank, 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.
• For a fee, the bank’s HELOC comes with a fixed-rate option that allows you to convert some or all of your balance from a variable rate to a fixed rate. The terms are up to 15 years, depending on your state.

Drawbacks

• Regions Bank offers competitive rates to qualified borrowers with strong credit. If your credit could use some work, you’ll get a higher-than-average rate.
• If you repay your HELOC within two years, you’ll be subject to also repaying the closing costs the bank covered on your behalf.

Home equity loan products offered

With Regions Bank, you can choose between two home equity products: a HELOC and a home equity loan.

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, taking the remaining 20 years for repayment.

The bank’s home equity loan is available for amounts starting at $10,000 up to $250,000. The bank offers repayment terms of 10 years, 15 years or 20 years at a fixed rate.

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 also charges an over limit fee of $29 per incident, a $15 returned check fee and a 5 percent fee for any late payments (from a minimum of $29 up to $100; in Texas the late fee is $15). If you’re interested in the fixed-rate HELOC option, Regions Bank charges a $100 conversion fee.

How to qualify for a home equity loan with Regions Bank

Whether you qualify for a Regions Bank HELOC or home equity loan depends on a few factors: your credit score, combined loan-to-value (CLTV) ratio, existing debt and the collateral used to secure the loan.

The bank requires that the collateral be a primary or secondary residence with a minimum of $10,000 in equity. Additionally, the bank limits the CLTV ratio to up to 89 percent for a home equity loan and 80 percent for a HELOC.

How to apply with Regions Bank

When you’re ready to apply for a Regions Bank home equity product, you can do so in a few ways: online, over the phone or at a branch. The bank’s phone lines are open Monday through Thursday, 7:30 a.m. to 8 p.m. CT; Friday, 7:30 a.m. to 6 p.m. CT; and Saturday, 8 a.m. to 12 p.m. CT. The bank also has a 24/7 online chat feature that can answer basic questions and connect you with a representative. Note: You’ll need to visit a branch to close your loan or line of credit.

How Bankrate scored Regions Bank

• Methodology

  To determine a home equity lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; introductory APR - 20%
  • Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10% 
  • Borrower experience: Rate transparency - 45%; convenience - 35%; customer service - 10%; fixed-rate options - 10%

  Learn more about our methodology.