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This transparency around rates and fees can make it easier for homeowners to make good borrowing decisions. While finding a low interest rate is a priority, you also want to make sure a loan or HELOC doesn’t come with hefty fees, which could offset your savings from a lower rate. Knowing what to expect upfront can help you compare home equity products and find the best deal. Options include interest only payments, a percentage of the outstanding balance or a term equal to the home equity loan term shown above. Allows you peace of mind that your payments will be automatically debited from your checking account each month. If your checking account is a Regions checking account, you may qualify for a rate discount.
Even if you can borrow a large amount, that doesn’t mean you should. Over-borrowing against your home is risky and could leave you with negative equity, or owing more than your home is worth, if your house’s value drops. Additionally, the bank requires an LTV of up to 89 percent, and the loan must be a first or second lien on the property. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy. Prequalification isn’t the same as a full loan approval, though it’s a first step.
Compare interest rates for home equity loans, HELOCs and cash-out refinancing
Rate discount must be applied prior to loan closing and is not available if you enroll in auto-debit at a later date. The amount of the discount varies based on your type of relationship with Regions, ranging from 0.25% up to 0.50%. Some steps you can take to improve your credit score include making on-time payments on loans, paying down debts, and reducing your credit utilization ratio. You can also order a free copy of your credit report from AnnualCreditReport.com. Home equity loans may be preferable if you know the amount you need upfront, for example, if you’re using the funds to consolidate debt or pay for a single project. HELOCs offer more flexibility and may be a better fit for projects with variable or unpredictable costs, such as if you need to pay for ongoing home improvements.
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A lender that offers low introductory APRs and no closing costs for home equity products.
That's why we made it so easy to apply for a Home Equity Line of Credit in just minutes. From home improvements to college education and beyond, we offer the financial support to make it all happen. We make it easy to apply for a Home Equity Line of Credit so you can focus on the important things in life. Use your home's equity to make upgrades, take care of needed expenses, or debt consolidation.
To check your rates, you’ll need to create an account with the bank. Regions Bank customers can get rate discounts between 0.25% and 0.50% if they set up automatic payments from their Regions Bank checking account. Regions Bank does not charge closing costs for home equity loans, but you may have to pay closing costs if you borrow a HELOC.
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The calculations provided by this calculator are based entirely on the information you enter, including any loan amount and/or interest rate. These calculations do not reflect the terms available for any Regions loans or whether you qualify for any Regions loan. The minimum monthly payment required each month for your home equity loan. Regions requires that the collateral for the loan be a primary or secondary residence within a state that the bank serves. Borrowers must also have a minimum of $10,000 in equity on the property. Although the bank offers a handful of home equity benefits, there are a few drawbacks to consider before applying with Regions Bank.
If you do submit a full application, try to keep your loan shopping to a 45-day window so the credit bureaus will treat multiple hard credit checks as a single inquiry. 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.
Line of Credit
HELOCs, on the other hand, are lines of credit that you can draw on as needed. You can borrow as much as you want , whenever you want during the draw period. You’ll only pay interest on what you borrow, not the entire line amount. Some HELOCs let you make interest-only payments during the draw period, which often spans 10 years. A typical repayment period is 20 years, during which you’ll pay back what you borrowed, plus interest.
Home equity loans are a type of installment loan that you pay off over time. You’ll get a lump sum upfront and pay it back with fixed monthly payments over five to 30 years. Home equity loans typically have fixed interest rates that stay the same over the life of your loan. Regions Bank also provides a rate calculator, which you can use to estimate your rate and monthly payment amount.
Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Rates are usually variable, but you might have the option to lock in a fixed rate on a portion or the entirety of your balance. HELOCs, however, can have closing costs between $150 and $2,000, but Regions will pay these costs if the HELOC amount is $250,000 or less. Regions Bank offers both home equity loans and home equity lines of credit . A home equity loan allows you to borrow a lump sum upfront, whereas a HELOC is a line of credit that you can continuously draw upon as needed.
At NextAdvisor we’re firm believers in transparency and editorial independence. Editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by our partners. Editorial content from NextAdvisor is separate from TIME editorial content and is created by a different team of writers and editors. With a long list of lenders at your fingertips, you can start to narrow down your options by figuring out whether you need a home equity loan or a HELOC.
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