Regions Mortgage Reviews

Regions Mortgage does not publish its starting rates online. However, you can request a customized rate quote from the company directly from its website.

In 2021, Regions Mortgage had a slightly higher average home purchase rate than the national average (about 0.05% higher). In the year prior, the company’s average rate was 0.03% lower than the national average.

Interest rates vary by borrower. Typically, the lowest rates are available to borrowers with excellent credit scores (800 and up) and low debt-to-income ratios (below 36%) — basically, the borrowers with the greatest risk of default generally have higher interest rates.

Regions Mortgage offers both fixed- and adjustable-rate mortgages (ARMs). Most borrowers prefer fixed-rate mortgages because they offer a predictable monthly payment. However, an ARM could be useful in some situations. For example, if you plan to sell your home in a few years, you may consider getting an ARM to save in interest. ARMs usually offer a low introductory rate for the first few years.

Regions Mortgage average home purchase rate vs. national average

You can begin the application process online through the Region’s Bank website. You can apply for pre-qualification (which doesn’t require a hard credit check) or skip forward to preapproval.

The preapproval application will ask for information about your income, assets and debt. Be prepared to upload financial documentation, like bank statements and pay stubs. Regions Mortgage uses this information to determine how much you can borrow.

If you need assistance during this process, the company provides a phone number and email address for borrower support. Your dedicated loan processor will also reach out to help you finalize your application.

Patrina, a ConsumerAffairs reviewer from Georgia, had this to say about their experience with Regions Mortgage: “If we could give more than 5 stars we would! We did an FHA loan through Regions and closed just yesterday. Our loan originator Nick and loan processor Julianne were both responsive and knowledgeable and kept abreast of what was going on with our loan process every step of the way…”

Regions Mortgage application features

Regions Mortgage offers a wide variety of home loan options, including conventional loans (with fixed or adjustable rates), VA loans, FHA loans, USDA loans and jumbo loans. Loan terms can vary depending on the loan type, but most conventional loans have either 15-year or 30-year terms.

The company also offers loans to fund new home renovations or new construction (construction-to-permanent). The construction-to-permanent loan allows for a single closing for both the construction loan and the permanent mortgage loan.

In 2021, Regions Mortgage received 23,761 home purchase applications. Of those applications, about 3% were preapprovals denied. About 66% were closed, and about 11% were denied (the industry as a whole sees about an 8% denial rate.)

Loan applications for home purchases only by year

The majority of the home loans Regions Mortgage originated in 2021 were for refinancing (42% were refinance loans and cash-out refinances combined). About 33% were for home purchase loans.

Borrowers typically choose to refinance their existing mortgages when they’re certain they can save money somehow (either by lowering their interest rate or by shortening their loan term). Many borrowers chose to refinance in 2020 and 2021 because rates had fallen to record low levels. Even a small reduction in your mortgage interest rate can equate to significant savings over the loan term.

Since 2021, rates have been rising steadily; the average rate on a 30-year fixed-rate mortgage has close to doubled in a year. For this reason, fewer borrowers are expected to refinance in 2022.

Home purchase vs. refinance loans by year

HELOC and home equity loans

Regions Mortgage offers both HELOC and home equity loan options. The HELOC has a 10-year draw period and a 20-year repayment period. The home equity loan comes in seven-, 10-, 15- and 20-year terms. The company offers an interest rate discount for both HELOCs and home equity loans if you set up an automatic payment with your Regions Mortgage checking account.

Home equity loans carry fixed interest rates, which won’t change over the loan term. However, HELOCs usually have low introductory rates for a short time (with Regions Mortgage, it's six months). After that, the interest rate is variable and can fluctuate based on the prime rate.

A home equity loan is generally the better option if you know how much you need to borrow and need those funds upfront in a single payment — like if you plan to renovate your kitchen and you’ve received a cost estimate from a contractor. With a home equity loan, you’ll begin repaying the loan immediately.

However, a HELOC can be useful if you don’t have a cost estimate but know you’ll need consistent access to cash in the short term. For instance, you may plan to update your home with new fixtures and appliances but prefer to make smaller purchases over a longer period of time. Keep in mind that with a HELOC, you’re only required to make interest-only payments during the draw period, which could sink you into debt if you aren’t careful.

Regions Mortgage doesn’t disclose much info about its borrower requirements online. Conventional loans generally have higher credit score requirements than government-backed mortgages; you’ll likely need at least a 620 credit score to qualify for a conventional loan. Credit score minimums for VA, FHA and USDA loans can vary by lender.

Down payment requirements can also differ, but you’ll probably need to offer at least 3% down for a conventional loan and 3.5% for an FHA loan (if your credit score is 580 or higher). VA loans and USDA loans typically have no down payment requirements.

National mortgage requirements by type

Regions Mortgage doesn’t disclose its lender fees, but origination fees, which are usually 0.5% to 1% of the loan amount, are typical. There may also be application and underwriting fees, though most lenders lump these into the origination fee.

Lender fees are part of the overall closing costs you’ll pay to start a new loan. Closing costs include fees for services like the title search and home appraisal as well as prepaid items like property taxes and mortgage insurance premiums. Altogether, closing costs tend to average between 2% and 5% of the loan amount.

Once you’re preapproved, you’ll receive a Loan Estimate, which will state all the potential closing costs. Your lender will also provide you with the Closing Disclosures three days before closing, which shows the finalized totals.