The US bank, based in Minnesota, looks back on more than 150 years of history and is a major player in the financial services sector.
In fact, it claims to be the fifth largest bank in the country. And when it comes to mortgages, US Bank was the 10th largest lender by volume in 2019.
However, the fact that many borrowers choose US Bank does not automatically mean that it is the best mortgage company for you. This choice depends on who can offer you the lowest interest rate and the best terms on your home loan.
Read up on the pros and cons, and check interest rates to determine if the US bank is the right lender for your mortgage.
US Bank mortgage rates
Below is how the U.S. bank's mortgage rates compare to other top lenders. The rates seem to be a bit higher on average.
Note that the averages shown in this table are for 2019 and are the latest available data.
Since then, interest rates have dropped significantly, so they do not reflect current mortgage and refinancing rates. It is simply a tool to compare lenders side by side.
Average 30 year mortgage rate from major lenders
30-year average interest rate, 2019
Monthly P&I payment *
Median Loan Costs, 2019
Median Origination Charge, 2019
Average tariff and fee data comes from public tariff and fee records required by the Home Mortgage Disclosure Act (HMDA).
* Monthly principal and interest payment based on a home price of $ 250,000 down 20% assuming an average 30 year interest rate for each business for 2019. Your own interest rate and monthly payment will vary.
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2020 US Bank Mortgage Review
US Bank offers a wide variety of mortgages and numerous options for your application.
Some things worth mentioning about the US Bank's mortgage program:
It offers construction loans for people who want to build their houses instead of buying one. Not all lenders do thisIt will partner with deposit support programs to approve first-time buyers who have had a hard time saving a large down paymentIt offers refinancing with no closing costs called "Smart Refinance" with a term of up to 20 years
The biggest downside we've seen with US Bank is that, on average, mortgage rates appear to be higher than other major lenders.
However, the interest rates vary widely from borrower to borrower. If the US Bank likes the look of your credit, down payment, and application, they may offer you the lowest interest rate of any lender you apply to.
You don't know who can offer you the lowest price until you've checked with some lenders. This is why it is so important to compare prices before buying.
Working with US Bank Mortgage
The US Bank recently revamped their website – and it's a huge improvement on their old one.
Via the online portal, you can start a home loan application on your laptop or mobile device, partially save it and access it at any time on any device. You can also securely upload documents.
The website also provides a wealth of information on various loan options, including current average mortgage rates.
Those who prefer to work with someone can apply to a specialist advisor in a local branch. Or you can speak to an advisor through the US Bank call center.
If you choose to apply in person, you need to make sure you have a local office. US Bank's network is smaller than many of its competitors.
However, the US bank has a head start in the Midwest, where its physical presence is stronger than other big lenders like Chase and PNC.
US Bank customer service ratings
US Bank seems to have improved their customer service since we first published this review.
Mortgage complaints from major lenders
Mortgage origins 2019
CFPB complaints 2019
Complaints per 1,000 mortgages
2019 JD nominal power
The US Bank's customer rating improved from 785/1000 in J.D.'s 2018 Mortgage Customer Survey. Power to 856/1000 in 2019. It rose from “below average” to slightly above average.
In addition, the US bank receives less than one complaint for every 1,000 mortgage customers registered with the Consumer Financial Protection Bureau. And it deserves an A + from the Better Business Bureau.
US Bank mortgage loan products
You can find a lot of information about the mortgages on offer on the US Bank website. These include:
Fixed rate mortgages – In addition to the usual 30-year term, you can take out loans for 10, 15 or 20 years to get mortgage-free soonerVariable rate mortgages – You can set your interest rate for an initial period of three, five or ten years. After that, your interest rate will fluctuate with the marketFHA loan – These loans, secured by the federal housing administration, allow you to make a down payment of only 3.5 percent and have less than flawless creditVA loan – Qualified veterans and service members can borrow with no down payment and no ongoing mortgage insurance paymentsUSDA loan – These loans are for low to middle income people living in skilled rural areas. Buyers can qualify for a USDA loan with 0% down payment Jumbo Loans – If you want to borrow more than the conventional loan limit which is $ 510,400 in most areas
The bank also touts investment property loans, as well as new home and land loans, for those planning to rent out their properties or build an entirely new one.
US Bank construction loans
The US Bank offers home loans to those who want to build their new home instead of buying it. These are different from mortgage loans.
A construction loan from the US Bank is a "short-term interim loan" that pays the builder in installments during the construction of the house.
During this time, the borrower only pays interest on the loan (also known as an “interest only payment”).
Once construction is complete, the borrower must either pay back the loan in cash or use a traditional mortgage to cover the cost of the house.
US Bank offers several types of construction loans to meet different budgeting needs. However, little information is available on this. The US bank prefers that you speak directly to one of their loan officers about construction loan options.
In addition, home loan interest rates are higher than mortgage interest rates because there is no property to secure the loan against.
US Bank Smart Refinance
The US Bank Smart Refinance is a type of refinancing without closing costs. It is available with fixed rates and a term of up to 20 years.
You can apply for US Bank Smart Refinance refinancing online, by phone, or at a US bank branch.
Remember, no-closing-cost does not mean that there are no costs associated with your refinancing. This means either the fees and closing costs are included in the loan amount or the interest rate is increased to cover the costs. Either way, you pay them over time rather than upfront.
Where can you get a mortgage from the US bank?
NMLS license number: 402761
The US Bank is licensed for lending in all 50 states.
If you like what you read in this US mortgage review, you want to know how to get ahead. Here are your options.
Apply digitally through the US Bank's fully functional online portal, available on desktop and mobile devices. Call a US Bank loan officer and call a loan officer in person at any of the US Bank's 2,000+ branches
Note that US Bank does not have physical branches in every state.
At the time of this writing, the company has nearly 3,000 offices in 26 states, mostly focused in the West and the Midwest.
The US bank will also close branches in 2020. You must therefore double-check whether there are still locations in your area. You can use the branch locator tool below to do this.
Use the US Bank Branch Finder to find a branch near you
Is the US Bank the Best Mortgage Lender for You?
If you already have a prior relationship with a U.S. bank through checking or savings accounts, or even have a prior relationship with a U.S. bank lending agent, that bank may be an excellent option for your mortgage.
However, the US bank's mortgage rates appear to be at the high end, at least on average. So make sure you compare some of the other lenders' personalized rates before making your decision.
This is the best way to get a low interest rate and big savings on your home loan.
Check your new plan (September 19, 2020)