Regions Bank Home Equity Line of Credit Review
Regions Bank offers some of the best interest rates that we’ve seen on both home equity loans and home equity lines of credit. They offer a number of rate discounts and have the widest array of ways to access your funds out of the lenders we reviewed. However, the information regarding their products can be a bit confusing the find on their website, and phone support leaves something to be desired.
What We Learned
Lower interest rates than most other lenders we reviewed.
Closing costs on home equity lines of credit are higher than other lenders.
Rates and Fees
Regions offers some of the best interest rates that we reviewed. Lines of credit have a variable interest rate from 3.75% to 18%, where it is capped. Loans have variable interest rates ranging from 3.625% to 10.125%, depending on the specifics of your loan and your credit history. One of the best aspects of Regions Bank is that they waive or pay all closing costs on loans, and all closing costs on lines of credit up to $250,000. For lines of credit more than $250,000 they will pay up to $500 of the closing costs, which usually range between $150 and $2,000. However, if you close your credit line within 2 years then you will have to refund the closing costs to the bank. Additionally, your interest may be tax deductible.
Regions evaluates loan-to-value ratio, credit score, credit history, debt-to-income ratio, and income-to-loan ratio when determining eligibility for loans and home equity lines of credit. Some customers have reported that Regions bank customers have an advantage when qualifying for loans, but we were not able to get a Regions Bank loan officer to confirm or deny this.
Regions allows you to borrow up to 80% of the value of your home, which is a bit higher than the industry standard. As a result, you might be able to get a larger loan or line of credit with regions than with some of the other lenders that we reviewed. Additionally, your home will be subject to appraisal, and you will have to accept a lien on the property in the first or second position.
Customers have reported a generally positive experience with Regions Bank home equity products. Their website has a lot of information, both generally about home equity products, and about the specific products that Regions offers. Their website also has guides that walk you through the process of obtaining a loan or line of credit, which will give users a good idea of what documentation and information they need to have ready. This saves valuable time and money for individuals who might be busy and not realize what forms they need to have.
Additionally, Regions is a mid-sized bank and has branches in a number of states. Customers who walked in for service found that loan officers were generally helpful and able to help customers select the right product for them. This can be important given how confusing different financial products can be, and helps put Regions near the top of our list of lenders to look into when you are considering a home equity loan or line of credit.
Regions offers very competitive rates and a higher LTV than most other lenders. The phone service is a bit lacking, but their website has lots of useful information to help you get a handle on the different products they offer. If you are already a Regions customer, you may qualify for additional rate discounts to make those loans an even better deal.