U.S. Bank
- Home equity loan, HELOC, rate-lock HELOC
- HELOC APRs range from 8.95% to 13.1%; Home equity loan APRs start at 8.40%
- 660
- Live home loan support at 855-382-1403
U.S. Bank is one of the ten biggest banks in the country. It offers home equity loans and home equity lines of credit, or HELOCs, as well as mortgages and refinance loans.
This Minnesota-based bank has near nationwide availability, funding home equity products in every state except Texas, Delaware and South Carolina. Thanks to its extensive availability, excellent price transparency, and various customer support options, U.S. Bank is one of our top home equity loan and HELOC lenders.
U.S. Bank: At a glance
| Types of loans offered | HELOC, rate-lock HELOC, home equity loan |
|---|---|
| APR | HELOC: 8.95% to 13.1% 10-year home equity loan: 8.40% 15-year home equity loan: 8.40% |
| Loan amount | $15,000 and $750,000 (up to $1 million in California) for HELOCs |
| Credit score minimum | 660 |
| Repayment terms | HELOC: 10-year draw period, unspecified repayment period Home equity loan: 30 years |
| Average time for approval | Varies |
U.S. Bank is best suited for homeowners who need a high loan amount and have adequate equity built up in their home. The lender requires homeowners to have a credit score of at least 660 to qualify for a home equity loan or HELOC. But to be eligible for its lowest rates and terms, U.S. Bank wants a borrower to have a credit score of at least 730 and a loan-to-value ratio, or LTV ratio, no higher than 60%. Employees of U.S. Bank are also eligible for preferred loan rates.
What we like
Rate-lock option on HELOCs: You can convert the entire loan, or just a portion of it, to a fixed interest rate for up to 20 years. You can have up to three active locks on your HELOC at any given time.
No closing costs: Borrowers aren’t responsible for paying any of the closing costs or third-party fees during the loan process, which can save you thousands of dollars.
High loan amounts: If you’re completing a large project, such as a home renovation, you may need hundreds of thousands of dollars. You can apply for up to $750,000 (or $1 million in California), which is a higher maximum than some other lenders.
What we don’t like
Early closure fee: If you pay off and close your line of credit within 30 months of opening it, U.S. Bank will charge you an early closure fee of 1% of the original line amount, up to $500.
Auto-pay requirement: If you want to lock in the lowest rate, you’ll need to set up automatic payments from either a U.S. Bank checking or savings account. However, opening a checking or savings account with the bank isn’t necessary for loan approval.
Interest-only payments are limited: You can make interest-only payments on your HELOC if you meet certain credit qualifications, which U.S. Bank doesn’t disclose. That could be limiting for some borrowers because one of the main benefits of a HELOC is that you have low monthly payments during your draw period. If you don’t qualify for interest-only payments, your minimum monthly payments must be no less than 1% of the outstanding loan balance.
Home equity loan options
- Home equity loan: You can borrow a large sum of money at a fixed rate with the U.S. Bank home equity loan. The bank has loan terms of up to 30 years.
- HELOC: With a U.S. Bank HELOC, you get access to a revolving credit line at a variable interest rate. It has a standard 10-year draw period, with an unspecified repayment period. However, most HELOCs operate on a 10-year draw period and a 20-year repayment schedule.
- Rate-lock HELOC: U.S. Bank also offers a rate-lock HELOC option, in which you have the option to lock all or part of your outstanding HELOC balance into a fixed-rate option during your draw period. You can have up to three rate locks at one time.
You can request an interest-only HELOC, which means you’ll have to pay back only the interest on what you’ve borrowed during the draw period. However, the interest-only option isn’t available to all borrowers. Eligibility will depend on certain credit requirements, which the lender doesn’t explicitly state on its website. If you don’t qualify for interest-only payments, your minimum monthly payment must be no less than 1% of your outstanding loan balance.
Fees
U.S. Bank doesn’t charge closing costs on home equity loans or HELOCs, though you could be charged an early closure fee of 1% of the original loan amount (up to $500) if you pay off your HELOC early. The bank defines early as within 30 months of opening the HELOC.
Borrowers may also have to pay an annual fee of up to $75 unless they hold a U.S. Bank Platinum Checking Package or are enrolled in the bank’s Smart Rewards Program.
How to qualify
As long as you’re located in one of the 47 states with U.S. Bank branches, have good credit (at least a 660 credit score) and don’t exceed an LTV ratio of 80%, you should qualify for a U.S. Bank home loan. The bank likes to see a credit score of 730 or higher if you want to lock in its lowest rates. In some cases, the bank says it will offer lower introductory rates to highly qualified candidates in certain situations.
How to apply for a home equity loan or HELOC with U.S. Bank
You can apply for a U.S. Bank home equity loan or HELOC online, over the phone by calling 855-382-1403 or in person at a physical branch. Applying for a home equity loan or HELOC is similar to applying for your first mortgage in the amount of time and financial paperwork you’ll need when applying. For example, you must show proof of employment and income through your Form W-2. The bank may also require you to get an appraisal of your home’s value.
When it’s time to close on your loan, you will need to visit a physical U.S. Bank branch.
Customer service
- Call 855-382-1403
- Request a call from a U.S Bank home equity expert.
- Virtual or in-person appointment
- Online chat
