US Bank Mortgage Review: Variety of Tools and Loan Types

What are the pluses of using a US Bank home mortgage?

U.S. Bank is considered a top selection in the home mortgage loans sector. Customers can choose from seven types of U.S. Bank mortgage loans with which to purchase their dream home.

Read on to learn about mortgage options so you know what to ask before getting one.

US Bank Mortgage Review

U.S. Bank provides a variety of tools to help customers decide which loan best suits their needs and goals. Its website has a mortgage calculator, loan comparison charts and lists loan officer locations. If you’re opening a U.S. Bank mortgage account for the first time, you can expect the bank to cover some of the bill with its U.S. Bank Customer Credit, provided the customer credit is approved before the loan approval. This way, 0.25 percent of the loan amount can be deducted from the final bill, for a maximum of $1,000.

Know: 7 Tips for Getting a Preapproved Mortgage

Conventional Fixed-Rate Loan

A U.S. Bank conventional loan offers low rates for eligible customers, with no additional rate increases throughout the duration of your loan. This option might benefit you best if you plan on either living at your target home for some time or you can put at least 5 percent down on the property. Note that putting less than 20 percent down will likely require you to get private mortgage insurance (PMI), which would increase overall costs.

US Bank Conventional Fixed-Rate Loans
TermRateAPR
30-year fixed4.750%4.825%
20-year fixed4.500%4.601%
15-year fixed4.250%4.378%
10-year fixed4.500%4.684%
Information accurate as of Aug. 8, 2018.

Adjustable-Rate Mortgage

ARMs usually benefit customers with lower rates and monthly payments, in addition to shorter terms. However, these U.S. Bank mortgage rates can increase once the original term rate expires. U.S. Bank offers three-, five- and 10-year ARMs, with an APR of 4.990 percent, 4.810 percent and 4.563 percent, respectively.

Federal Housing Authority Loan

Customers with low credit or limited funds should consider U.S. Bank’s Federal Housing Authority loan option. The FHA loan qualifications are usually more expansive and welcoming than other loans, thanks to looser requirements on payments and credit history. The catch is interest rates could be higher, and those who opt for the loan will almost certainly have to purchase PMI. The minimum down payment for an FHA loan is 3.5 percent. A 30-year fixed-rate loan has a 5.695% APR and a 15-year fixed-rate carries a higher APR at 5.706 percent.

Veterans Affairs Loan

Active-duty or veteran service members should definitely consider a Veterans Affairs-backed mortgage. Its key benefits include:

  • Low or no down payment
  • No PMI required
  • Fewer hardline qualification requirements

To be considered eligible, you must meet the following requirements:

  • 90 days of consecutive service during wartime
  • 181 days of service during peacetime
  • Six years of service in the National Guard or reserves

Understand: 19 Reasons Your Mortgage Loan Could Get Rejected

Jumbo Loan

Jumbo-sized properties call for jumbo-sized loans. Loans usually don’t exceed $453,100, depending on the area you live in. This home loan is used to purchase luxury properties or homes in expensive areas. Interest rates on jumbo loans exceeding $1 million might even be tax deductible. Although, given the size of the loan, applicants should be sure their credit score is at least 740.

US Bank Jumbo Loans
TermRateAPR
30-year fixed4.500%4.522%
20-year fixed4.500%4.530%
15-year fixed4.250%4.288%
Information accurate as of Aug. 8, 2018.

Investment Property Loan

Customers aspiring to be landlords should check out U.S. Bank’s investment property loan mortgage option, which lets you finance a residential property with one to four units. These loans also cover people who want to buy a second home or a vacation rental property.

Construction Loans

You can use these U.S. Bank loans to finance construction projects or to purchase the lot upon which you will construct your new property. U.S. Bank recommends some personal research on the part of the applicant, including checking the builder’s credentials and ensuring the logistics of the project fall within state and insurance guidelines.

Get More Info: How Do Construction Loans Work?

The Bottom Line on US Bank Mortgage Loans

The several U.S. Bank mortgage loan options should cater to a wide variety of needs based on financial limits. The opportunity to take 0.25 percent off the closing price is nothing to scoff at, as that can help offset the mortgage application fees. On the other hand, U.S. Bank’s mortgage rates and APR are higher than the market average, according to Zillow. U.S. Bank’s online platform for mortgages, however, comes with a good amount of useful tools that should make the entire process easier for the customer. The bank’s reputation as a mortgage lender leader should not be underestimated, whatever its rates are; it was the only bank reporting mortgage service growth, according to a Forbes report in June 2018.

Up Next: I Paid Off My Mortgage With a Credit Card — Here’s How

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This content is not provided by the companies mentioned. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been reviewed, approved or otherwise endorsed by US Bank.

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