US Bank Mortgage Review 2019


US Bank Mortgage Review 2019

Share: Rating: 3.5 stars out of 5

US Bank started in 1963 as First National Bank of Cincinnati.  After several mergers throughout the years, they officially took the name US Bank and set up home base in Minnesota.  They have since become the fifth largest bank in the nation. They are a full-service traditional bank with over 3,000 branches in 26 states mainly in the mid-west and western United States.

US Bank offers a wide variety of products from checking and savings accounts to mortgages and refinances options. Although they only have branches in some states, US Bank offers mortgages in all 50 states. One feature that sets US Bank apart is offering no application or loan origination fee. However, if you do not live near a branch location, getting a mortgage or construction loan may be challenging.

Although US Bank started as a traditional brick and mortar bank, today they offer mobile and online banking as well. You can get pre-qualified and even start your mortgage application online.

Pros

  • Knowledge Source, Customized calculators
  • Online pre-qualification
  • One stop shop for all your personal banking and mortgage needs
  • Flexible conditions, discounts

Cons

  • The application process cannot be completed 100% online
  • Less competitive rates compared to the market
  • Weak customer review
  • Some loans are only available in areas where US Bank has a physical branch

US Bank Mortgage Products, Fees, and Conditions

  • Conventional Fixed Rate Mortgage – US Bank offers loan terms of 30, 20, 15 and 10 years. Rates range from 4.1-4.6% and are based on a credit score of 740. Conventional loans are typically the most popular loan and require a down payment of at least 5 percent. Fixed rate mortgages are a good option for buyers planning on staying in the home for a long period of time and who do not want their interest rate to change.
  • Adjustable Rate Mortgage– requires a high credit score of 740 or higher and rates are about 4-4.4%. US Bank offers adjustable rate mortgages in 10, 5, and 3 year loan terms.  ARM’s are best for those who only plan on being in the home for a short period of time or investors looking for a quick turnaround. This type of loan has a fixed interest rate for the initial period, but then changes annually each year over the life of the loan. Since the rates for the initial fixed period are often lower, those who end up staying in the home can refinance to a fixed mortgage.
  • FHA Mortgage – is available in 15 or 30 year terms with rates currently about 4.5%. FHA loans are geared towards those with lower credit scores and little down payment.
  • VA Mortgage – is available in 15 or 30 year terms with rates around 4.6-4.9%. VA loans are for eligible military service members and certain family members.  They help current and former military members afford a home even with lower credit scores and no down payment.
  • Jumbo – US bank typically requires a 700 credit score to qualify for a Jumbo loan. You can get a jumbo loan in 15, 20, and 30 year terms with rates averaging in the mid 4%. Jumbo loans are for homes with a higher value that don’t meet that standard conforming loan limits.
  • Refinancing options are also available for conventional, FHA, and VA loans. Cash out refinancing options are also available as well as streamline refinances if you are an existing US bank mortgage customer.
  • Home equity (HE) loans and home equity lines of credit (HELOC) are also offered. They are available in 5,10,15,20, and 30 year terms and the interest rates vary from about 6-7.5 percent. Home equity and HELOCs are often an attractive offer because the interest rates can be lower than other forms of credit like credit cards. Funds can be used for a variety of things such as home repairs, school, or other large purchases and may even be tax deductible.   You can borrow anywhere between $15,000 to $750,000 and in California even up to one million. Things like credit history, debt, and value of your home will affect home much you are able to a borrower. Loan origination fees may apply, but there are no closing costs for HE and HELOC’s.

You can use our extensive set of calculators determine which of the loans are better for you, whether to get a 15 or 30-year loan, whether to refinance, how much home you can afford, whether to make extra payments and more.

US Bank Loan Process

To get your mortgage started with US Bank you can prequalify and apply online.  You can also call, request a call, or meet with a mortgage officer in person if one is near your location. To pre-qualify you need a credit score of 620 and two years proof on employment. You will also need to provide some basic information like name and home address.

The application cannot be fully completed online. At some point you will need to meet face to face with a loan officer. You will need to provide certain personal and financial documents throughout the loan process.  Additional documents may be required to provide things like tax returns, W2’s, paystubs, and credit card statements. US Bank will also pull your credit report and order the appraisal for the home you are refinancing or the home you are interested in buying.

The length of time it takes to close depends on how quickly you can provide the requested documentation. If you would like more information you will have to contact a loan officer at US Bank or fill out a request for information online.

US Bank Mortgage – Pros

  • The website is full of helpful information and tools – Home affordability and refinancing calculators are available to you. These tools are great features that allow you to play with factors like down payments and interest rates to help you get a better idea of what is affordable.
  • US bank allows you to pre-qualify and apply online – Doing anything online tends to be the quickest and easiest solution, so we appreciate having this option.
  • US Bank publishes their rates online – They are based on high credit scores, but at least you don’t have to fill out a bunch of information and wait for someone to call you back. In an instant you can see what the current interest rates are for all of their mortgages. This is great for those of us who prefer to shop around before making any big decisions.
  • US bank can be a one-stop shop for all your personal banking and mortgage needs – For those of us who find finances organized in one place, you have that option here.
  • Discounts are available for current customers – If you have a US Bank Platinum Checking account you might qualify for a discount on your mortgage fees of up to $1,000.
  • waives origination charge – Often time’s lenders charge a loan origination or application fee as well as closing costs. US Bank waives their origination charge. This means savings right off the bat. The Borrower will have to pay for charges such as their credit score and appraisal however.

US Bank Mortgage – Cons

  • The application process cannot be completed 100% online. Although you can start the application online, at some point you will need to meet with a mortgage officer. US bank does not have mortgage officers in some areas, making in person business difficult.
  • Lower rates – US bank does not offer the best rates, but they do claim at times to make exceptions on certain requirements like credit score.
  • Customer review – US Bank does not have the best customer reviews in terms of response time and patience. They need to work a little to bring up their customer service rating.
  • Loans Availability – Construction and some loans are only available in areas where US Bank has a physical branch.

Should You Consider US Bank Mortgage

Since US Bank has such a wide variety of mortgage products, anyone can find the right loan. There are even options for refinancing or tapping into your homes equity. However, if you do not live near a branch location, getting a mortgage or construction loan may be challenging. Check out their website and use the location finder to see if there is a US Bank location near you.

For those that like all their finances in one place, US Bank might be the right option for you. They are a full service bank, meaning you can have your checking and savings account there as well as your mortgage. They also offer online and mobile banking, adding further to the convenience of US Bank as a whole.