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US Bank is a mortgage lender that provides loans in all 50 states and has physical branches in 26 states. US Bank offers a digital application process with face-to-face communication at one of its branches. US Bank is the 6th largest mortgage lender offering a wide range of mortgage products. The mobile mortgage panel makes it easy to manage your account.
The main disadvantage is that you cannot get an estimate of the rate and commission before you apply. However, you can prequalify everyone online and get an assessment without a credit check.
Pros and cons of US bank residential mortgages
Large menu of mortgage products
Digital application process
Loan specialists are ready to help you
Existing customer loan up to USD 1000
Available in all 50 states
The advertised mortgage rates are for creditworthy borrowers.
Not all loan programs or amounts are available in all states
Physical branches in just 26 states
Limited information on rates and commissions online
US Bank Mortgage Lending: Types and Products of Loans
US Bank offers both conventional loans and government-backed mortgage loans. You can get the following types of loans, but not all products are offered in all states:
- Conventional Fixed Rate Loans: It has lowest fixed rates and are valid for 10, 15, 20 and 30 years.
- Adjustable rate mortgages: Offers the lowest short-term rates and lower monthly payments for the first few years. But later he switches to a variable market rate.
- FHA loans: Intended for low-income borrowers, these government-backed loans have lower creditworthiness standards.
- VA credits: Active military personnel, veterans, and eligible family members can access these loans, which come in fixed and variable rates and require an initial $ 0 or small contribution.
- Jumbo loans: Large loan amounts in excess of the applicable loan limits.
- Investment property loans: US Bank offers a variety of loan options for people looking to lease 1-4 apartment buildings.
- New construction and land loans: Comes with loan options from construction to permanent loan for borrowers building a home.
US bank mortgage loan: transparency
The U.S. Bank advertises rates and fees slightly differently than some of its competitors. For example, some lenders provide rates and commission schedules that match credit profiles and earnings. However, US Bank is touting several mortgage products with potential rates. However, the rate you see is based on ideal creditworthiness and assuming a 20% down payment.
For example, a 30 year fixed conventional loan is advertised with a low market rate, but you would need a 20% down payment, a financing fee paid by the borrower of 0.862%, and a very good credit rating (740+). Not every borrower falls into this basket, so it is advised to read the fine print and compare rate quotes among lenders.
The lender offers two separate online steps to get the settlement rate:
- Pre-qualification application: On an online form asking for your name, address, date of birth, residence status, annual income, and other debts. By filling out the form, you will be able to see the approximate rate, commission and amount you can borrow online. The website also states that this step does not affect your credit.
- Mortgage loan application allows borrowers to fill out all of their qualification information, upload documents and get approval online. A tight credit rating is usually required at this stage, which affects your credit rating, even if it is not clearly stated on its website.
US bank mortgage: rates and fees
The US Bank does not charge fees for issuing online payments as it varies from state to state. The lender charges a $ 395 application fee, but this fee is returned in the form of a loan after the transaction is closed. If you have your first US bank mortgage or US bank personal check package, you may be eligible for a 0.25% savings on your total closing costs, up to $ 1,000. The Bank of the United States does not charge a prepayment penalty, and late fees also vary by state.
US Bank usually works with borrowers with a credit rating of 620 or higher. Interest rates and the annual interest rate varies depending on the location, loan size and the borrower’s FICO estimate. You can view the current market rates based on the location of the borrower, but rates for regular and large loans are based on a 20% down payment and 0.862% finance charges, while rates for FHA loans are based on a 3.5% down payment, monthly mortgage. insurance and finance levy 0.862%. VA borrowing rates are based on $ 0 down payment and $ 4,025 VA funding fee.
Borrowers can pay out of pocket:
Refinancing at a US bank
US Bank offers traditional refinancing and cashing refinancingand if you have your first US bank mortgage or US bank personal check package, you will receive a loan of 0.25% of the loan amount up to $ 1000. US Bank also offers a Smart Refinance option with no closing costs, but this program is not eligible for the discount.
It is important to note that closing costs a loan does not mean that you completely skip closing costs. This means that these fees are credited to the balance of the loan and financed along with the loan. The advantage is that you don’t pay upfront and out of pocket for closed costs, but you pay plus interest.
You can apply for refinancing online and the process can take 30 to 90 days. A $ 395 application fee will be refunded to you if you choose to close. All other refinancing fees are state dependent.
U.S. Bank Compared To Other Mortgage Lenders
|Bank of the USA||chase||Bank of America|
|Minimum credit rating||620 for normal 740 for large||Not provided||Regular: 620FHA and VA: 620 Jumbo: 720|
|Minimum down payment||Normal: 5% Jumbo: 10% for FHA: 3.5% VA: 0%||Normal: 5% Jumbo: 20% FHA: 3.5% VA: 0% DreaMaker 3%||Normal: 5% Jumbo: 20% FHA: 3.5% VA: 0%|
|Where does the lender work?||All 50 states||All 50 states||All 50 states|
|Main types of loans||Regular fixed speed, ARM, FHA, VA, jumbo, investments, new construction, traditional refinancing, cash refinancing, smart refinancing, equity||Regular flat rate, ARM, FHA, VA, DreaMaker, jumbo, traditional refinancing, cash-out refinancing||Regular flat rate, ARM, FHA, VA, jumbo, conventional refinancing, cash-on-demand refinancing, equity|
How to shop around to get the best mortgage rate
The best way to make sure you are getting the lowest annual interest rate available is to compare rates and commissions from multiple lenders on the same day. You can prequalify with most lenders without compromising your credit. Pay attention to the differences in the estimated rates of different lenders, as even a slightly lower interest rate can save you thousands over the life of the loan. And when you’re ready to officially apply to multiple lenders, make sure you do so within a 2 week period to avoid getting on credit multiple times.
Here’s an example. Suppose you received two mortgage offers on a $ 350,000 home with a 20% down payment and 30 years maturity.
|Interest level||Monthly payment of principal and interest||Total savings on percent|
|3.25%||USD 1218||USD 13,816|
The higher interest rate of 3.5% yields a monthly principal and interest (P&I) payment of $ 1,257 over 30 years. However, lowering that rate to 3.25% lowers monthly P&I by $ 39. Sounds a little, but over 30 years this adds up to a savings of $ 13,816 in interest.
US Bank offers various types of mortgages and a simple digital application process. In 26 states, you also have the option to visit a physical branch for more help. According to the information on the company’s website, the rates are competitive for paying customers. You need to be prequalified to understand what rates and fees each borrower can receive. US Bank can be a good option for existing US Bank clients who are eligible for loans up to USD 1,000. However, all borrowers should compare several lenders when making a decision.