Because of rising property prices, the values of homes have also increased; thus, it may be a good moment to tap into the equity you have built up in your home and utilise that money for objectives such as making improvements to your home or consolidating high-interest debt. A line of credit secured by your home’s equity is one approach that can be used here (HELOC). Borrowers with HELOCs simply have to return what they borrow plus interest, similar to credit card borrowers. The most notable distinction between the two is that a HELOC is secured by your home, which means that the lender has the legal right to foreclose on the property in the case of failure. Investigate your other loan options, including those with lower rates and fees, before committing to a home equity line of credit (HELOC).
Forbes Advisor has prepared a list of the 20 most significant HELOC lenders in order to choose those that excel in a variety of categories. These areas include providing cheap fees or rates, discount promotions, credit availability, loan amounts, speed, ease, and flexibility. Our mission is to simplify the process of comparing different home equity lines of credit (HELOCs), which you may use whether you want to access the equity in your house right away or are unsure of the optimal time to do so. As of the middle of January 2023, the interest rates are shown as annual percentage rates (APRs). We also took into account the combined loan-to-value (CLTV) ratio requirements of each lender. This ratio is computed by adding together all of the outstanding loans on a property and comparing that total to its current value.
A CLTV ratio of at least 80% is required by the majority of lenders. Homeowners who are interested in accessing the value they have built up in their homes can turn to Regions Bank, a national bank that offers home equity loans and home equity lines of credit (HELOCs). Deposit account holders who enrol in autopay at Regions Bank are eligible for an introductory APR of 0.99% on qualified home equity lines of credit (HELOCs) and 4.5% on home equity loans. The home equity lending provided by Regions Bank comes with a number of advantages. An attractive introductory APR is included in the package for its HELOC. In addition, Regions Bank will pay for all of your closing costs for loans and lines of credit up to $250,000.
This allows you to retain more money in your wallet while still obtaining cash for significant life necessities such as home improvements or automobile purchases. You have the option of converting all or a portion of your outstanding debt which is $5,000 or above into a loan with a fixed interest rate thanks to the Loan in a Line feature that the lender provides as part of its HELOC. You have the option of selecting a repayment term of three, five, seven, ten, or fifteen years, and if you exercise this choice within the first thirty days of obtaining your HELOC, Regions will not charge you the $100 conversion fee.
Despite the numerous advantages of home equity loans, Regions Bank is not necessarily the ideal option for all customers. Even though it is a nationwide bank with hundreds of branches across the United States, the property you plan to use as collateral must be located in a state in which Regions Bank operates a branch. The advantages include a low introductory APR on HELOCs for the first six months, as well as no closing costs for HELOCs and home equity loans up to $250,000.
- Choice of a fixed interest rate for HELOCs
- Discounts on interest rates are given to encourage the use of automated payments.
Cons
- Limited state availability
- HELOCs and loans with a balance that is greater than $250,000 may be subject to closing costs.
- If you live in Texas, the required minimum draw amount is $4,000.