When you take out a mortgage to buy a home you are committing to pay a significant chunk of your earnings for up to 30 years. For this reason, you should choose an established, reliable and yet innovative convenient mortgage lender. Enter Regions Mortgage.
Related: Buying a house? Make sure you’re prepared by reading our complete guide on buying a home.
Who Is Regions Mortgage?
The parent bank traces its beginnings to 1852 and today it has more than $126 billion in assets. Regions belongs to the Fortune 500 and the S&P 500 Index. Its shares trade on the New York Stock Exchange.
“At Regions, we strive to help our customers meet their financial goals, and homeownerships is often high on their lists,” said Bob Cabrera, head of Regions Mortgage.
“Our goal is to provide both exceptional personal service through our mortgage specialists and the digital tools and services that make completing the loan process easier and more convenient than ever.”
Regions Banking Network
With headquarters in Birmingham, Alabama, Regions has 1,455 branches. They are located in 15 states in the South and Midwest. Texas, with 77 branches, is one of its biggest markets. The rest are in:
- Alabama – 197
- Arkansas – 73
- Florida – 305
- Georgia – 115
- Kentucky – 10
- Illinois – 46
- Indiana – 50
- Iowa – 8
- Louisiana – 96
- Mississippi – 117
- Missouri – 63
- North Carolina – 7
- South Carolina – 23
- Tennessee – 209
- Texas – 77
Regions is a big bank, clearly. But does it do mortgages? Indeed it does. The bank offers a wide variety of products to suit your home loan needs.
Types of Loans Offered
The typical home mortgage is a 30-year, fixed-rate loan. But that plain-vanilla loan isn’t right for every borrower or every deal. Consider whether one of the following mortgage types from Regions fits your need.
Fixed Rate Mortgages
Having a fixed rate mortgage means you don’t have to be concerned with the direction of interest rates. The interest rate on the original loan papers is the rate for the life of the loan.
This means the principal and interest portion of your payment won’t change. Most fixed rate mortgages are for 30 years or 15 years. However, Regions can offer a variety of other loan terms.
Adjustable Rate Mortgages
The beauty of an Adjustable Rate Mortgage (ARM) is that you can get a lower interest rate and monthly payment in the early years of your loan. This can be golden for a young homebuyer who expects earnings to climb as his or her career advances.
The thing to remember about ARMs is that, unlike a fixed rate mortgage, the rate can change. That can mean a higher monthly payment. The rate on most ARMs stays the same for the first one to 10 years of the loan.
After that, it adjusts every year. Market conditions determine the rate. Lenders use a shorthand language to describe an ARM. A 3/1 ARM, for example, has a fixed rate for the first three years.
After that, the rate adjusts annually. A 7/1 ARM stays the same for seven years, then changes each year.
VA Fixed Rate Mortgages
The U.S. government Veterans Administration has a homebuying program just for veterans of the military. It allows veterans to buy a home with no down payment at all.
Veterans who use the VA home loan program can also get a below-market interest rate. And, unlike FHA mortgage borrowers, VA home mortgage borrowers don’t have to pay for mortgage insurance.
A VA-backed home mortgage is one of the most attractive mortgages you can get. The zero-down payment feature alone can save you from having to tap your savings for thousands of dollars.
FHA Fixed Rate Mortgages
The Federal Housing Administration (FHA) is an unit of the U.S. government that insures home mortgages. This means you can buy a home with a lower down payment, you can also qualify with a lower credit score.
The minimum down payment for an FHA loan is normally 3.5 percent. That’s just $7,000 on a $200,000 home, for instance. This down payment option is for borrowers with credit scores of at least 580.
If you have a lower credit score, as low as 500, you may still be able to qualify, according to FHA guidelines. However, you may have to put down 10 percent, or $20,000 on a $200,000 home.
If you get an FHA loan, you will have to get mortgage insurance if you put down less than 20 percent. Mortgage insurance protects the lenders and owners of the mortgage from losing money if you are unable to repay the loan.
Tip: You can always put down more than 20 percent. The more you put down, the easier it is to qualify and the lower your monthly payment will be.
Special Mortgage Programs
Along with these industry-standard mortgage programs, Regions Mortgage also has some special offerings.
Renovation and Construction Loans
You can borrow from Regions for a construction loan to build your dream home exactly the way you want it. With a single closing, you can get access to a loan that lets you finance your new-home project. Then Regions can convert that loan into a permanent mortgage.
Renovation loans are secured by the house and can be used to update, expand or improve an existing home. Regions renovation mortgages offer an affordable way to use long-term financing to make your home better.
Affordable Home Mortgage Programs
Mortgages are expensive – there’s no denying that. Down payments and closing costs can eat up many people’s savings. Regions Mortgage offers some affordable options that can help with this part of buying a home.
Some of Regions’ affordable home mortgage programs have flexible qualifying rules. They can allow you to make a lower down payment. You may also be able to save money on closing costs with one of these programs.
Tip: If you meet the income requirements, Regions may be able to direct you to a source for a grant or unsecured loan to help lower the cost of buying a home. These subsidies may come from government agencies, non-profit groups or corporations.
How to Get a Regions Mortgage Loan
To get started with a Regions Mortgage, you can use their online locator tool. This will help you find a bank mortgage loan officer, also called a mortgage loan originator in your state, city or neighborhood.
Another way to get a mortgage is to work with a mortgage broker. A mortgage broker will work with several different lenders. A Regions mortgage officer is an employee of the bank and can help you choose the right Regions mortgage for you.
Your mortgage officer will ask for tax returns, pay stubs, bank statements and other documents needed to prepare the loan. He or she will tell you about other things you need to get, such as property insurance for your new home and an appraisal.
The mortgage officer can tell you how much your loan will cost. You’ll get a figure for how much cash to bring to the closing.
At the closing you’ll sign all the documents. There is often a thick stack of these. And you’ll pay the necessary closing costs. Then the home will be yours.
Should You Get a Loan from Regions Mortgage?
Regions is a big, well-established bank with a long history of mortgage lending. When you go to Regions Mortgage for a home loan, you know you are dealing with a reputable organization that has all the most popular products and can get you the best deal on your new home.