U.S. Bank: 2022 Home Equity Review

Founded in 1863 as the First National Bank of Cincinnati, today, U.S. Bank is the fifth-largest commercial bank in the country. Based in Minnesota, it has 2,000 branch locations in 26 states. In addition to mortgages and refinances, U.S. Bank offers home equity lines of credit (HELOCs) and home equity loans.

U.S. Bank snapshot

Home equity loan types	Home equity loan Home equity line of credit (HELOC)
Loan amounts	$15,000 to $750,000 (or $1 million in California)
Credit score minimum	Not specified
Repayment terms	Home equity loan: Up to 30 years HELOC: 10-year draw period, unspecified repayment period
Average time to approval	Not specified

Benefits

• No closing costs: U.S. Bank covers all closing costs for borrowers looking for a home equity loan or HELOC.
• Fixed-rate options: You can convert all or any part of your HELOC to a fixed-rate loan and have up to three fixed-rate loans at any time.
• Range of borrowing amounts: Depending on your credit history, available equity and debt-to-income (DTI) ratio, you may be eligible to borrow anywhere from $15,000 to $750,000 (or up to $1 million for California properties).
• Discounts for customers and automatic payments: If you have a U.S. Bank checking account and meet other qualifying criteria, you’ll be eligible for the lowest rates. Likewise, if you make automatic payments from a U.S. Bank checking or savings account, you’ll be eligible for a rate discount. 

Drawbacks

• Fees: If you pay off your HELOC within 30 months, you’ll pay a fee equaling 1 percent of your original line amount (up to $500). You might also be charged a $90 annual fee after the first year.
• Pay more than just interest during HELOC draw period: With most HELOCs, you pay only interest during the draw period. With U.S. Bank, you might be required to pay 1 percent or 2 percent of the balance amount with each payment. (You might be able to pay only the interest if you have a qualifying credit score.)

Types of fees charged

There are no closing costs on U.S. Bank’s home equity products. However, there is an early termination fee of 1 percent (up to $500) on HELOCs if the account is closed within 30 months.

After the first year, there is an annual fee of $90 on all HELOCs, though you can waive this if you have a U.S. Bank Platinum Checking Package.

Loan products offered

In addition to mortgage refinancing, U.S. Bank offers two home equity products: a line of credit and a loan. The HELOC has a 10-year draw period and a variable rate, but the bank also offers a fixed-rate option so you can convert any or all of your line into a loan with fixed monthly payments. You can have up to three fixed-rate plans in place at any given time.

With a U.S. Bank HELOC, you’ll choose to pay a minimum of either 1 percent or 2 percent of the balance each month, applied to interest and principal, during the draw period. You might be able to make interest-only payments, but that will depend on your credit score.

If you’re looking to borrow one lump sum and want predictable monthly payments, you might want to consider U.S. Bank’s fixed-rate home equity loan instead. You can borrow between $15,000 and $750,000 (or up to $1 million in California) depending on your credit history, available equity and current DTI ratio. Loan terms can go up to 30 years.

How to qualify for a home equity loan with U.S. Bank

All loans are subject to approval, and your APR will depend on credit history, loan amount, property value and property location. U.S. Bank does not disclose credit score requirements, but in order to get the best rate, you’ll have to have a credit score of at least 730.

How to get started

You can apply for any of the U.S. Bank home equity products online, by phone or at a branch. You can also apply through the mobile app. After an initial review, a U.S. Bank branch officer will contact you for any additional documentation necessary to underwrite your loan.

Next, you will have your property appraised, and then your application will go through a final approval. Depending on the product, you might have to visit a branch to close. Funding will be available three days after closing.

For more information about U.S. Bank’s HELOC, visit the bank’s website or call 800-642-3547. You can also schedule a phone call or chat online with a personal banker.

How Bankrate rates U.S. Bank

Overall Score	4.0
Availability	3.4
Affordability	4.6
Customer Experience	4.0

Methodology

To create our Bankrate Scores, we evaluated lenders based on availability, affordability and customer experience. Availability was assessed based on the minimum loan amount required, time to approval, days to close, minimum draw requirements, minimum credit score requirements and loan types offered. Affordability was assessed based on minimum APR, discounts and promotions offered and associated fees. Customer experience was assessed based on online application and account availability, customer support, auto payment availability and mobile app availability and ratings.