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Home Equity FAQs

We have compiled these questions using input from several different areas including Regions' Customer Service Department. However, please remember an "FAQ" section is simply a listing of frequently asked questions. If your question is not answered here, feel free to call us at 1-800-REGIONS (1-800-734-4667).

 

 

 

What is home equity?
Home equity is the part of your home that you own outright. In other words, it is the difference between the appraised value and any outstanding mortgage balances(s). For example, if your home is worth $150,000 and the principal balance remaining on your mortgage is $100,000, then your home equity - the portion of your home that you own - is $50,000.

 

 

What are some of the benefits of borrowing using the equity in my home?
  • Lower Interest Rates. You can save money with a lower interest rate compared to most credit cards, auto loans, and unsecured lines of credit.
  • Tax Advantages. In many instances, the interest paid on a Home Equity Loan or Line is tax deductible. Consult your tax advisor for details.
  • Debt Consolidation . Using your home's equity to pay off high-interest rate debt, such as credit cards, is the smart way to improve your cash flow.
  • Home Improvements. Investing the money in home improvements actually helps to build equity while borrowing against it.
  • Emergencies. It's comforting to know that the financial power of your home can help during an illness, loss, or other emergency.
  • Education. For many people, a Home Equity Loan or Line is the only means available to finance college, graduate or technical schools, or other educational endeavors.
  • Business Startups. A Home Equity Loan or Line can provide the much needed and hard-to-get start-up capital for your business.

 

 

Is a Home Equity Loan or Line right for me?
Absolutely! You have worked hard to build equity in your home. Now, put it to work for you, and enjoy the many benefits of a Home Equity Loan or Line of Credit.

 

 

What is the difference between a Home Equity Loan and a Home Equity Line of Credit?

A Home Equity Loan provides you with a one-time lump sum cash amount. You repay it as you would any other installment loan in fixed monthly payments. These fixed-rate loans guarantee your rate will never change and your payment will never increase. Once you get the money, you cannot borrow further from that loan.

A Home Equity Line of Credit establishes a maximum line of credit which you can draw against by simply writing a check or by using your Regions Platinum Mastercard® or Visa®. You borrow what you need when you need it. As you repay your principal, that money becomes available to borrow over and over again. This means you don't have to reapply every time you need funds.

 

 

Will interest on my Home Equity Loan or Line be tax deductible?

According to the current tax laws, interest up to $100,000 of debt, secured by the equity in either your principal residence or second home, is fully deductible. However, there are exceptions to every rule. So, check with your tax advisor.

 

 

Where do I close my loan?

At a Regions branch convenient to you.

 

When do I get my funds?

Once you close your loan, federal regulations require that we wait three business days before the loan or line of credit proceeds are available to you. During those three days, you have the right to cancel the transaction.

 

 

Can I have a fixed or variable rate on my Home Equity Line of Credit?

Yes! In addition to our standard variable rate, you can choose our "Loan in a Line" option. The "Loan in a Line" allows you to lock in all (up to your credit limit) or a portion of your Home Equity Line of Credit balances at a fixed rate. This allows you the security of having a fixed rate, a fixed payment and a fixed term. The best part about this feature is that as you pay down your Loan in a Line fixed rate balance, your variable rate line of credit becomes available for future use. Subject to a set up fee and other restrictions.