The Yahoo view: U.S. Bank is a compelling choice for a wide range of home loan products. And the bank has made a financial commitment to advance homeownership for underserved borrowers.
U.S. Bank is a leading mortgage lender with a lot of appealing products, including home equity loans and lines of credit. However, advertised mortgage rates are designed for well-qualified buyers with substantial down payments, so you’ll want to take the website’s sample rates with a grain of salt.
Key benefits
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Has committed $100 million over five years to offer up to $12,500 in and up to an additional $5,000 in a lender fee credit to advance homeownership for underserved families.
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Existing U.S. Bank customers may be eligible for a closing costs credit of up to $1,000.
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The prequalification process is free, “takes five minutes,” and does not impact your credit score.
Need to know
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Apply for a loan with a loan officer in person, by phone, or online.
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U.S. Bank’s mortgage rates, as published on its website, look appealing. However, the rates shown require a down payment of 25% and a FICO score of 740 or better. That’s well above the national average credit score of 714.
Loan types offered
U.S. Bank mortgages for first-time home buyers
You’ll find all of the popular first-time home buyer loans at U.S. Bank, including for service-connected borrowers and for those with lower credit scores.
Plus, the bank has made a solid financial commitment to giving low- and moderate-income buyers access to down payment and closing costs assistance. It’s one of the reasons U.S. Bank made the Yahoo Finance list of .
One interesting note: It’s common for lenders to offer a for first-time buyers, but U.S. Bank requires a 5% down payment instead.
There are plenty of first-timer resources. You’ll find the usual articles, such as:
There are also a couple of very relatable videos about the mortgage experience and the home-buying process.
U.S. Bank mortgages for home equity lending
Home equity loans and lines of credit are available at U.S. Bank. It’s nice to see a lender not trying to pass off a as an equivalent product. U.S. Bank offers those, too, but few people are looking to refinance these days.
Cash-out refis will regain popularity as people purchase homes at today’s higher rates and look for lower-interest-rate options in the future.
One thing that U.S. Bank is promoting is providing a Loan Estimate to detail the terms of a without completing a full loan application. Loan Estimates are required by law to be issued to potential borrowers once an application has been made, but U.S. Bank is giving you a preview of the important three-page document.
U.S. Bank mortgage rates
Clicking “buy your new home” or “refinance your mortgage” sends you to informational pages with sample interest rates. As noted above, the rates are based on some stiff qualifications and the purchase of up to one .
Lenders use upfront fees such as discount points to make their advertised interest rates appear more favorable. The problem is that one lender may sweeten their rate with one point — while another may add two points.
It’s confusing and sometimes hard to tell if you’re comparing apples to apples. When you narrow down your lenders to those you are most interested in, ask them to quote you a rate with zero discount points.
Applying for a mortgage with U.S. Bank mortgage
with U.S. Bank “takes five minutes,” is free, and “won’t affect your credit,” the lender says. By prequalifying, you may get a good idea of your potential interest rate or find out what you need to clean up with your credit history, but remember — a prequal is not a commitment to lend.
The U.S. Bank online mortgage application is typical among major lenders. It will take some time, and you’ll have to upload some documents, so tackle it only when you’re prepared and have the time to focus on it for a while.
U.S. Bank mortgage home-buyer tools and calculators
The U.S. Bank Learning Center has articles on the mortgage underwriting process — or the procedure for how loans are approved — as well as mortgage insurance, down payment assistance, and the basics of first-time homebuyer loans.
Calculators include:
Something we don’t see often: U.S. Bank also has a very useful calculator that can help you think through the decision to own a house rather than pay rent.
How U.S. Bank mortgages compare to other mortgage lenders
U.S. Bank mortgages vs. Truist mortgages
When it comes to finding interest rates, U.S. Bank and Truist make it easy. Both have easy-to-find mortgage rate pages and show various interest rates on different loan products.
Both U.S. Bank and Truist default to showing mortgage rates with one discount point. However, Truist goes a step further and allows you to price a sample interest rate with zero points. Advantage: Truist.
However, Truist doesn’t reveal much else about what its interest rates are based on, such as credit score, debt-to-income ratio, and the required down payment. U.S. Bank does. Advantage: U.S. Bank.
Another reason it’s always a good idea to shop multiple providers to find the .
U.S. Bank mortgages vs. Chase mortgages
Banks often have very similar home loan programs. Yet Chase does not offer home equity loans or . U.S. Bank provides both. For homeowners seeking to access the value in their house, U.S. Bank is the clear choice.
However, both banks have strong closing costs and down payment assistance options. The two banks also offer in-demand government loans such as VA mortgages for borrowers with a military connection and FHA-backed loans for households with limited incomes.
Find mortgage lenders that offer what you want, then let them compete for your business.