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If you love low rates but hate closing costs, U.S. Bank may be the lender for you: It keeps its borrowing terms competitive, with few fees (some of which can be waived if you open an additional account). This mega-lender has multiple branches but also comprehensive digital banking services. It is a tad old-fashioned in that it favors the creditworthy and existing customers, and frowns on interest-only HELOC repayments.
Headquartered in Minneapolis, U.S. Bank is one of the oldest (dating back to 1863) and largest banks in the country. It operates more than 2,000 branches in 26 states, but also has a robust online presence: Approximately 65 percent of all its loan applications – including home equity loans – originate online, the lender says.
U.S. Bank offers two home equity products: a line of credit and a loan. While the HELOC has a variable rate, it 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 locks 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.
U.S. Bank’s fixed-rate home equity loans allow customers to borrow a maximum of 80 percent of the home’s equity (calculations include their first mortgage). Loan terms can go up to 30 years.
Because of some of the lowest rates in the marketplace and the absence of closing costs, U.S. Bank scores a perfect 5 out of 5 for affordability.
U.S. Bank’s diverse mix of home equity loans and convertible HELOCs offer a product that can fit nearly any borrower’s needs. However, the bank’s higher credit score requirement and higher loan minimum dropped its score to a 4 out of 5 for availability.
While U.S. Bank checks just about all the boxes – convenient application process, the ability to get in-person support and the flexibility for fixed rates on a HELOC – there is one issue: You’ll have to open a U.S. Bank checking account to manage your payments if you want the lowest rates and to avoid fees. That requirement means you may need to determine if you want to deal with the hassle of reconfiguring your banking needs, and that’s why — along with an indeterminate closing period — we gave U.S. Bank a 3.4 out of 5 for borrower experience.
Bankrate insights
You can tap your home equity — the difference between your home's worth and what you owe on your mortgage — with a home equity loan or a HELOC. With those funds, you can tackle a variety of expenses, like debt consolidation or home renovations. However, before you dive in, it's important to figure out your loan-to-value ratio (LTV). Lenders use your LTV to determine how much of your equity stake you can actually borrow. (It’s typically 80 percent, although some lenders allow you to access as much as 90 percent.) The amount of equity they’ll let you tap is one consideration when choosing a lender. Be it a retail bank, online lender or credit union, it may offer different home equity loan rates and terms, too. That’s why it’s important to shop around for the best deal.
U.S. Bank is the fifth-largest commercial bank in the country, which means its reputation can differ drastically. J.D. Power’s U.S. Retail Banking Satisfaction Study regularly puts it in the top 10 in several regions, including no. 1 in California for four years in a row. In contrast, the bank has a poor 1-star rating on Trustpilot — though many of the issues are related to credit cards and checking accounts, not home loans.
The vast majority of customers who applied for home equity products with U.S. Bank told Bankrate that they were pleased with the experience. In addition to highlighting the ease of the online application, most reported positive interactions with loan officers, too, especially their ability to “literally walk me through the process, so that I did not have to …stress over the situation.” “They also weren't pushy at all,” another says. A few did mention that the bank seemed “a little long with service times.”
All loans are subject to approval, and your APR will depend on credit history, loan amount, property value and property location. You’ll need to have homeowners insurance, and at least 20 percent equity in your home. U.S. Bank requires a minimum credit score of 660, but in order to get the best rate, you’ll have to have a credit score that’s much higher: at least 730.
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. You can complete a basic application online after you’re prequalified, by calling 844-957-1476. Or you can request a call.
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.
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U.S. Bank
Bankrate score
4.3
Bankrate scores are objectively determined by our editorial team. Interest rates, fees, loan terms, borrower requirements and customer service are some of the factors that make up Bankrate's score.
Customer score
4.2
Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.
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Bankrate score
Bankrate scores are objectively determined by our editorial team. Interest rates, fees, loan terms, borrower requirements and customer service are some of the factors that make up Bankrate's score.
Customer score
Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.
|
Bankrate score
Bankrate scores are objectively determined by our editorial team. Interest rates, fees, loan terms, borrower requirements and customer service are some of the factors that make up Bankrate's score.
Customer score
Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.
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Loan amount |
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$25,000-$750,000 (up to $1 million in California) |
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Min. credit score required |
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660 |
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Repayment terms |
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10-year draw period/20-year repayment period (HELOC); up to 30 years (home equity loan) |
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Funds available in |
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Undisclosed |
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Recent customer review |
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Customer review No reviews available yet. N/A |
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4.2
22 ratings
77% of customers would recommend this lender.