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Regions Bank Home Equity Loans Review
By Joan Pabón MONEY RESEARCH COLLECTIVE
Regions Bank is among our top picks for the best home equity loan lenders in the nation. It offers competitive rates and a good selection of loan terms from which to choose. Regions also have above-average customer satisfaction ratings, according to J.D. Power’s latest Primary Mortgage Servicer Satisfaction Study. Borrowers in the South, Midwest and Texas looking to tap into their home equity may want to consider this lender — especially if they value transparency regarding rates.
Table of contents
- Regions Bank home equity loan overview
- Regions Bank’s services
- Regions Bank’s credentials
- Regions Bank’s accessibility
- Regions Bank’s customer satisfaction
- Regions Bank FAQ
- How we evaluated Region Bank’s home equity loan
- Summary of Regions Bank review
Regions Bank home equity loans overview
- Fixed rates as low as 5.25% APR with autopay
- Covers all closing costs on HELOCs under $250,000
- Accepts an LTV ratio of up to 89%
- Minimum equity requirement of $10,000 for all loan types
- Offers rate discounts for checking account customers
- No annual fee on HELOCs
- Limited service area — 15 states
- Charges late, over limit and return check fees
- $100 fee for "loan in a line" conversions
- Charges some closing costs on HELOCs of over $250,000
Regions Bank’s services
As a retail and commercial banker, Regions offers personal and business checking, banking and loans. On the retail side, it also provides investment and wealth management services, credit cards, mortgage loans and refinancing, student, personal and auto loans, personal lines of credit, and both home equity loans and HELOCs.
What’s offered
- Home equity loans
- Home equity lines of credit
- Adjustable-rate loans
- First-time home buyer loan
- Fixed-rate loans
- Construction loans
- Renovation and repair program
- Fixed-rate FHA loans
- Fixed-rate VA loans
What’s not offered
- USDA loans
- Jumbo loans
Regions offers both a home equity loan and a home equity line of credit (HELOC). It doesn’t charge closing costs on home equity loans and will cover all closing costs on HELOCs under $250,000, but it does charge the standard return check fees ($15), over limit fees ($29) and late fees ($29–$100). Borrowers who already have a checking account with Regions Bank may sign up for automatic payments and obtain a discount on their loan or line of credit.
Home equity loans are available for amounts between $10,000 and $250,000 and have four repayment term options to choose from: 7, 10, 15 and 20 years. As of the date of this review, HELOAN rates with Regions range between 5.50% APR and 13% APR.
For HELOCs, loan amounts go all the way up to $500,000, and there is only one term option available: 30 years (a 10-year draw period and a 20-year repayment. HELOC rates range between 5% APR to 11.875% APR, but an introductory rate of 0.99% APR is offered for the first six months.
Those looking for the convenience of a HELOC but wary about variable rates will be glad to know Regions also offers a loan in a line (LNL) product, which allows borrowers to convert all or a portion of their line of credit balance into a fixed rate and term, which can span 3, 5, 7, 10 or 15 years (although options may vary by state). There is a $100 fee for the conversion, yet it can be waived if the conversion request is submitted within 30 days of the account opening.
To qualify for a home equity loan or HELOC through Regions Bank, borrowers must meet the following criteria:
- The property used as collateral must be a primary or secondary residence and have at least $10,000 in equity.
- The loan or line of credit must also be in first or second lien position. (This last requirement makes Regions slightly more flexible than other bank lenders, which typically require the loan or line of credit to be in first lien position.)
- Have no more than an 89% loan-to-value (LTV) ratio for a home equity loan
- Have no more than an 80% LTV for a HELOC
Regions Bank’s credentials
Regions Bank is a subsidiary of Regions Financial Corporation, one of the largest bank holding companies in the United States and the largest deposit holder in Alabama and Tennessee. Regions Financial Corporation was founded in 1971 and is headquartered in Birmingham, AL. It has been accredited by the Better Business Bureau since 1956 and holds an A+ rating (the highest letter grade rating) with the organization.
Licenses and registrations
Regions Bank is an equal housing lender and is FDIC insured. The bank is also registered with the Nationwide Mortgage Licensing System and Registry (NMLS). Its NMLS ID number is 174490.
Third-party ratings
The following are Regions Bank’s financial strength ratings, which evidence the lender’s ability to meet its financial obligations in the short and long term:
| Regions Financial Group | ||||
| S&P | Moody’s | Fitch Ratings | ||
| Senior unsecured debt | BBB+ | Baa1 | BBB+ | |
| Subordinated debt | BBB+ | Baa1 | BBB | |
| Regions Bank | ||||
| Long-term bank deposits | N/A | A1 | A- | |
| Short-term debt | A-2 | P1 | F1 | |
Each credit rating agency utilizes its own scale to “measure” creditworthiness or the company’s capacity to meet financial commitments. The ratings above indicate a stable or positive outlook for both Regions Bank and its parent company.
Regulatory or legal actions
In 2015, the Consumer Financial Protection Bureau (CFPB) took legal action against Regions Bank in relation to its overdraft practices. According to the CFPB complaint, Regions violated the Electronic Fund Transfer Act by failing to obtain consent via an “opt-in” from some of its customers before charging them overdraft fees. Additionally, the lender deceptively represented in ads that it would not charge overdraft fees in connection with ATM use, one-time debit card transactions and loan repayments, violating the Consumer Financial Protection Act of 2010 (CFPA).
There have been no recent regulatory or legal actions against Regions Bank in relation to its mortgage or home equity products.
Accessing Regions Bank
Regions Bank has branches across the South, Midwest and Texas. It operates through 1,400 banking offices and has approximately 2,000 ATMs across its locations. As its service area extends to States with a high concentration of Spanish speakers, its site is also available in Spanish.
Availability
Regions Bank offers banking services in the following states: Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, and Texas. There is also a branch located in Bristol, on the Tennessee-Virginia state line.
Contact information
Current and prospective customers may call Regions Bank at the following numbers:
- Customer Service Center: 1-800-734-4667
- Dedicated number for home equity products and services: 1-800-986-2462
- TTY/TDD service for customers with a speech disability or who are deaf or hard of hearing: 1-800-374-5791
There is also a chat feature on Regions Bank’s website and the mobile app designed to answer basic questions or connect customers with agents who can further assist them. This feature is available 24/7, according to Regions.
User experience
Regions Bank claims you can apply for a home equity loan or line of credit in just minutes, either online, over the phone or at a branch. And while some online reviews point out that Regions’ transparency regarding mortgage rates leaves much to be desired, this is not the case for its home equity products. Borrowers may compare both options side by side and get a breakdown of costs, fees and requirements on the bank’s website.
Regions’ website features a clean interface and is easy to navigate. Most of the information on the site is also available in Spanish. The bank also accepts telecommunication relay service calls and has TTY/TDD connectivity through its dedicated contact center for consumers who are deaf, hard of hearing or have a speech disability: 1-800-374-5791.
Limitations
Regions Bank’s main limitation is its service area, which spans just 15 states. And while the company claims bankers are available 24/7 via its live chat feature, customer support over the phone is limited to weekdays from 6 am to 7 pm and Saturdays from 8 am to 2 pm.
Regions Bank’s customer satisfaction
Regions was recognized as the best bank for customer satisfaction in Florida in J.D. Power’s 2022 U.S. Retail Banking Satisfaction Study. However, Regions was not included in the latest consumer lending satisfaction study for personal loans or the primary mortgage origination satisfaction study.
Customer complaints
On Trustpilot.com, an online consumer review website, Regions Bank has received mixed reviews from customers. Most of these (58%) claim the bank provided excellent customer service, while another 37% of customers reported bad service, giving Regions a single-star review.
On the Better Business Bureau’s website, Regions Financial Corporation has received a total of 992 complaints over the past three years. Most of those complaints have to do with the bank’s billing and collections practices, yet many others deal with its products/services and advertising/sales tactics. However, Regions has either resolved or answered all customer complaints, which may indicate the lender is committed to providing good customer service.
Third-party ratings
Regions Bank received the best overall score in Florida in J.D. Power’s 2022 U.S. Retail Banking Satisfaction Study. Regions Mortgage also received a high score (809 on a 1,000-point scale) in the 2021 U.S. Primary Mortgage Servicer Satisfaction Study. However, Regions was not included in the agency’s latest Consumer Lending Satisfaction or Primary Mortgage Origination studies.
Regions Bank FAQ
How to get a home equity loan through Regions?
To obtain a home equity loan through Regions Bank, the residence that will serve as collateral for the home must be located in a state where the bank has a branch. Additionally, they must comply with the following:
- The home must be a primary or secondary residence with at least $10,000 in equity
- Have the loan or line of credit in the first or second lien position
- Have an LTV that doesn't exceed 89% for home equity loans or 80% for HELOCs
- To receive a lower rate, already have a checking or savings account set up with autopay
Minimum credit score and income requirements are not specified, but credit history and debt-to-income (DTI) ratios are important factors in determining an applicant's eligibility for a loan. Additional documentation evidencing homeowners, wind or flood insurance may also be required.
Current customers may apply for a home equity loan or line of credit over the phone, online or at a local branch and obtain a decision in as little as one business day — provided they submit the required documentation in a timely manner.
How long does it take to get a home equity loan from Regions Bank?
You can get a credit decision from Regions Bank regarding their home equity products in as little as one business day and close on your loan or line of credit within 28 to 32 business days from the time of application. This timeframe, however, will depend on your ability to provide the required income and insurance documentation.
What is the interest rate for a home equity loan from Regions Bank?
As of the date of this review, rates on home equity loans from Regions Bank range from 5.50% APR to 13.00% APR. HELOC rates, on the other hand, range from 5% APR to 11.875% APR with a 0.99% 6-month introductory rate.
Nevertheless, actual rates will vary depending on the type of occupancy (whether a primary or secondary residence), lien position (whether the loan is in primary or secondary position), creditworthiness, LTV ratio, loan term, and any applicable discounts.
What credit score does Regions Bank use for mortgages?
Like most other mortgage lenders, Regions Bank uses FICO® Scores when evaluating creditworthiness for loan products.
Minimum credit score requirements are not advertised on the Regions' website, but according to Experian, most lenders require a FICO score of around 620 for conventional home loans and between 660 and 700 for home equity loans.
The higher your score, the lower the interest rate you may qualify for and the less you'll pay in interest overall.
How we evaluated Regions Bank’s home equity loans
When evaluating Regions Bank’s home equity loans and lines of credit, we took into account the following:
- Product details provided by Regions Bank on its website or over online chat
- Third-party customer satisfaction and financial strength ratings
- Online customer reviews from sites such as Truspilot.com and BBB.org
- Information on regulatory actions from sources such as CFPB and NMLS
Summary of our Regions Bank review
Regions Bank is a good option for borrowers in the South and Midwest, particularly those who live in Florida, where the bank has received recent accolades for customer service satisfaction in retail banking. Spanish-speaking customers in these areas will also appreciate the fact that the bank’s website is available in Spanish and customer service is also provided in this language.
Rates on home equity products through Regions Bank are competitive and fees are reasonable. Moreover, existing customers with a checking account set up with automatic payments can get a rate discount on their loan or line of credit. Lastly, the bank doesn’t charge closing costs on home equity loans and will cover all closing costs on lines of credit under $250,000. For those who qualify for a line of credit of over $250,000, the bank will cover up to $500 in closing costs (typically between $150 to $2,000).
One of the best things about Regions Bank is that it offers an option few other lenders do: the loan in a line (LNL) feature. This option allows borrowers to convert a portion or all of their line of credit into a fixed rate and term, essentially allowing them to get a fixed-rate HELOC. This hybrid product offers the flexibility of a line of credit and the security of fixed rates and monthly payments, making it a great option for those planning long-term home improvement projects.
Joan is a professional translator, writer and editor with a special interest in personal finance and insurance topics. She has been a contributing author and independent researcher at ConsumersAdvocate.org since 2017 and an editor at Money since 2019. Her work has been featured in MSN Money and Apple News.