Thursday, February 9, 2023

Is Us Bank Good For Mortgages

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Choosing A Mortgage Term

First-time home-buying process A U.S. Bank mortgage experience

There are other considerations to your mortgage term length besides just the mortgage rate. Breaking your mortgage, which happens when you sell your home and move or renegotiate your mortgage before the end of the term, will come with significantmortgage prepayment penalties. You will be able to avoid mortgage penalties if you wait until your term expires. A short mortgage term would be more suitable if youre thinking of selling your home soon or refinancing your mortgage.

Theres also a chance that mortgage rates might not move in the direction that youre predicting it will, or it might not move as much as you thought it would. For example, a 10-year fixed mortgage rate might be at 5% while a 5-year fixed mortgage rate might be at 3%.

If interest rates stay the same for the next ten years, youll be paying a mortgage rate of 5% while you could have had a mortgage rate of 3% for two 5-year terms.

If interest rates increase by 2%, where the first 5-year mortgage term has a rate of 3% and the second 5-year mortgage term has a rate of 5%, youll still be worse-off with a 10-year mortgage as youre paying the 5% rate for the first five years rather than 3%.

Mortgage rates will need to increase significantly for a 10-year mortgage term to break-even over shorter-term options.

Us Bank Mortgages Review: Other Requirements

  • Minimum 20% down payment
  • Paperwork related to income, employment, assets, debts

Besides the credit score requirements, the bank typically requires a down payment percentage of 20% for conventional loans. Again, this is relatively high compared with competitors and anyone with less than that amount will have to pay the mortgage insurance as well.

In respect of verifying your employment and income, pay stubs from the last month will likely be required showing year-to-date earnings along with W-2 or I-9 tax forms for the past two years. Bank account and asset statements will be needed too, along with paperwork relating to existing real estate, and any loans attached to it. Also be prepared to discuss and have paperwork related to any other loans you might have.

U.S. Bank is available across all 50 states, so there should be few restrictions in terms of location, while you dont have to have a U.S Bank account in order to apply for a loan.

What You Should Know

  • Variable mortgage rateshave historically performed better than fixed mortgage rates, although interest rates have generally fallen over the past few decades
  • 5-year fixed mortgages are the most popular in Canada
  • Insured high-ratio mortgageswill have the lowest possible mortgage rate, but youll need to pay formortgage default insurance
  • Typically, longer mortgage term lengths will have a higher mortgage rate compared to shorter mortgage terms.
  • Closed mortgage rates are lower than open mortgage rates, but open mortgages allow you to make principal prepayments of any amount withoutmortgage penalties

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How To Apply For A Mortgage With Us Bank

  • You can apply online or by phone via digital mortgage application powered by Blend
  • A faster pre-qualification or loan estimate is also available if simply shopping around
  • Can request a call from a loan officer or visit a retail branch if located near you
  • Once approved you can track loan progress via the U.S. Bank Loan Portal

Those who want to apply for a mortgage with U.S. Bank can do so via their website, without human interaction.

So if youre the impatient type, or simply know what youre doing, you can get started straight away.

Their digital mortgage application is powered by Blend, a fintech vendor used by many of the top mortgage companies in the country.

Known as the U.S. Bank Loan Portal, it allows you to link financial accounts and speed through the application process without having to gather paperwork and upload documents.

You can connect payroll, tax, and bank account information securely to ensure your application is accurate and complete.

And once approved, you can track loan progress, get status updates, and send messages to your loan team if you have questions.

Alternatively, you can call them up or request a phone call, or visit a brick-and-mortar branch if you want a more hands-on, personal touch.

If youve been referred to someone specific, or want to work with someone in your neck of the woods, they have a loan officer directory as well.

All in all, U.S. Bank makes it easy to get pricing or apply for a home loan.

Best Midwest Lender: Busey Bank

Bank of America

Busey

Busey Bank is a large mortgage lender located in Saint Louis, Missouri. This bank delivers traditional Midwest business pride with award-winning customer service rankings. Busey runs additional offices in Florida, Illinois, Indiana, and Missouri. Of 21 banks rated in J.D. Power’s 2020 U.S. Retail Banking Satisfaction Study, Busey finished sixth out of 21 banks, beating out big names like Chase, Citibank, and U.S. Bank.

Though Busey isn’t the biggest lender on the block, it does offer a range of fixed and adjustable loans and loans through the FHA and VA mortgage loan programs. This bank started in 1868, making it 150 years old and one of the oldest lenders on this list.

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How To Shop Around To Get The Best Mortgage Rate

The best way to ensure you get the lowest APR available is to compare rates and fees across multiple lenders on the same day. You can prequalify with most lenders without hurting your credit. Pay attention to differences in estimated rates from various lenders since even a slightly lower interest rate could save you thousands over the life of your loan. And when youre ready to formally apply to a few lenders, make sure you do so within a 2-week period to avoid multiple hits to your credit.

Here is an example: Lets say you receive two mortgage rate quotes on a home worth $350,000 with a 20% down payment and 30-year term.

Interest Rate

Determine What Mortgage Is Right For You

When finding current mortgage rates, the first step is to decide what type of mortgage best suits your goals and budget. Most borrowers opt for 30-year mortgages, but thats not the only choice. Typically, 15-year mortgages have lower rates but larger monthly payments than the more popular 30-year mortgage. Adjustable-rate mortgages usually have lower rates to begin with, but the downside is that youre not locked into that rate, so it can change over the life of your loan.

Read Also: What Is A Good Home Mortgage Rate

Bankrate Survey: Young Americans Plan To Continue Delaying The Homebuying Process

Many Americans are postponing at least one major life event because of the coronavirus pandemic, according to a new Bankrate survey. 39 percent of respondents say theyve delayed buying or leasing a car, buying a home, getting married, having a child or taking another significant step.

Some 12 percent of respondents to Bankrates survey say they delayed buying a house, relieving some of the pressure on a booming housing market characterized by a sharp shortage of inventory. More than half of homebuyers who delayed real estate purchases anticipate waiting nine months or longer. Younger buyers were more likely to say theyre waiting.

The supply of existing homes for sale is near record lows, in part because homeowners decided not to sell during the coronavirus pandemic. Meanwhile, homebuilders havent ramped up to historical levels. While theres a shortage of homes for sale, theres a glut of buyers vying for homes. That has resulted in bidding wars and soaring prices.

Should I Choose A Fixed Or Variable Rate

Mortgage Basics: How does your credit score impact the home buying experience?

Variable rates allow you to take advantage of future decreases in interest rate. On the other hand, fixed rates are preferable if interest rates rise in the future. Unfortunately, long-term fluctuations in the prime rate are difficult if not impossible to predict.

However, a2001 studyfound that between 19502000, choosing a variable interest rate resulted in lower lifetime mortgage cost than a fixed rate up to 90% of the time. According to the study, if you are comfortable with the risks involved, a variable rate may reduce your long-term mortgage cost.

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Us Bank Customer Service Reviews

US Bank seems to have improved its customer service since we first published this review.

Mortgage-related complaints at major lenders

Company
0.36 850/1,000

US Banks customer review score improved from 785/1,000 in J.D. Powers 2018 mortgage customer survey, to 856/1,000 in 2019. That bumped it from below average to slightly above average.

In addition, US Bank gets fewer than one complaint per 1,000 mortgage customers registered with the Consumer Financial Protection Bureau. And it earns an A+ with the Better Business Bureau.

Us Bank Mortgages Review: Interest Rates And Charges

  • Rates updated daily on site
  • Can also search by state

U.S. Bank offers a lot of information to potential customers and makes sure that almost any question you may have about APRs and fees is available. Obviously, these are a moveable feast, but everything is kept up-to-date on the Todays mortgage rates page on the website, and is definitely something a lot of other providers could learn from in terms of making things transparent for new borrowers. There is also an option to browse by state, to get an idea of rates even closer to home.

As a result, you can calculate your mortgage or refinance package using the rates on offer for that day, which is a nice touch, and you get a comprehensive list of all the items you need and costs to expect before you enter into the application process. As previously mentioned, if you have less than the 20% down payment usually required, it is likely U.S. Bank will ask you to pay for mortgage insurance.

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Where Can You Get A Mortgage With Us Bank

NMLS license number: 402761

US Bank is licensed to lend in all 50 states.

If you like what youve read in this US Bank mortgage review, youll want to know how to move forward. So here are your options.

  • Apply digitally through US Banks fully-functional online portal, available on desktop and mobile
  • Meet with a loan officer in person at one of US Banks 2,000+ branch locations

Note, US Bank does not have physical branches in every state.

At the time of publishing this review, it has just under 3,000 branches in 26 states, primarily concentrated in the West and Midwest.

US Bank is also undergoing branch closures in 2020. So youll need to double-check whether there are still locations near you. You can use the branch locator tool below to do that.

Use the US Bank branch locator to find a branch near you

Us Bank Mortgage Pros And Cons

As of today, October 14, is 3.750% a good mortgage ...

The Good Stuff

  • Available in all 50 states and D.C.
  • Completely digital loan application with ability to link financial accounts
  • They advertise their mortgage rates
  • Discounts for existing U.S. Bank customers
  • Lots of home loan programs to choose from
  • Free mortgage calculators to determine affordability
  • They may service your loan as opposed to selling it off to a different company

The Possible Bad Stuff

  • No mention of lender fees
  • May need a high FICO score to get approved
  • Customer experience may vary since its such a large bank
  • Possibly bureaucratic since youre dealing with a huge company

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Us Bank Mortgage Purchase Review

Best for:

Standout feature: U.S. Bank offers a range of mortgage loan programs at competitive interest rates, plus discounts for existing customers and down-payment assistance for eligible first-time homebuyers.

U.S. Bank offers a variety of mortgage products, including fixed- and adjustable-rate loans, jumbo loans, VA loans, and FHA loans. If you have or open a Personal Checking package, U.S. Bank will deduct 0.25% of your loan amount up to $1,000 from your closing costs.

The lender also provides investment property loans, lot loans, and financing for new construction. In many cases, the construction loan converts to a regular mortgage at closing, after construction is complete.

First-time homebuyers can get down payment assistance through U.S. Banks partnership with state Housing Finance Agencies, local governments and nonprofits.

Buyers with low or moderate income can purchase affordable homes under the banks American Dream program, which provides low-down-payment and rehabilitation loans.

Mortgage programs Conventional, jumbo, FHA, VA, construction
Fixed-rate loan terms 10, 15, 20, 30 years
Adjustable-rate loan terms
0.862% finance charge ask your mortgage representative about origination fees
Min. credit score

Learn More: Mortgage Application Guide: How to Apply for a Mortgage

Should I Work With A Bank Or A Mortgage Broker

There are benefits and drawbacks to working with either a mortgage broker or a bank. Working with a mortgage broker gives you access to mortgage rates from a wide variety of lenders. That maximizes the chance that you’ll find a lower rate than you would by going directly to a bank. On the other hand, getting a mortgage from a bank can be quick and simple, especially if you already bank with them. We’d generally recommend seeing what rate your current bank will offer you, while also speaking to a local mortgage broker to see what other rates are on offer.

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How To Apply For A Mortgage With The Us Bank

To get started:

  • Go to the U.S. Bank website and select Personal, then Home loans, then Mortgages.
  • Choose Prequalify if you want to see your rates without a hard credit pull. Choose Apply if youre ready to start a loan application and follow the steps below.
  • Select Start as guest to create a new account. Enter your email, create a password and select Create Account. This will give you access to U.S. Banks loan portal.
  • Choose whether you want to buy a new home or refinance your existing mortgage.
  • Enter your personal information, coborrower information if any, property and price information, information about your assets, income and any real estate you own. Then answer the disclosure questions, declarations and citizenship status questions.
  • Review the application and select Continue, then enter your address history and employer information. Review your answers, Continue and Consent to submitting your application. Lastly, Submit the application.
  • A loan officer to reach out to you about the next steps. Alternatively, call 888-660-0219 to speak with a U.S. Bank home loan representative.

    Best Mortgage Rates Faq

    What’s it like to be a Mortgage Customer Service Representative at U.S. Bank

    What are todays mortgage rates?

    Between 2019 and 2021, mortgage dropped from over 4 percent to below 2 percent. Currently, mortgage rates are hovering near 3 percent for the best borrowers. Thats incredibly low compared to the historical average of about 8 percent for a 30-year fixed-rate mortgage .

    Whats a good mortgage rate?

    Historically speaking, anything below 4 percent is a very good mortgage rate. In todays market, the best rates might be in the high 2 percent or low 3 percent range. Remember that the lowest mortgage rates go to borrowers with strong credit, few debts, and at least 20 percent down payment.

    Who has the best mortgage rates?

    In our analysis of 40 top lenders, the ones with the best mortgage rates on average were Freedom Mortgage, Better Mortgage, Citibank, Guild Mortgage Company, and American Financial Network. These rankings are based on 30-year mortgage rates from 2020 Your own best mortgage rate could easily come from a different lender, which is why its important to compare personalized offers before choosing a lender.

    How do I compare current mortgage rates? What is the best mortgage loan type for me?How do I choose a mortgage lender?How is your mortgage interest rate determined?Does my down payment affect my rate?Are jumbo mortgage rates higher?Whats better, a fixed-rate mortgage or adjustable-rate mortgage?Whats better, a 30-year mortgage or a 15-year mortgage?

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    What Could Be Improved

    Transparent lending information

    U.S. Bank doesn’t publish details about what it looks for in an applicant on its website. Also, U.S. Bank says it works with various agencies to help borrowers get down payment assistance, but there’s no specific information. For example, a borrower will have to speak to a loan officer to find out how to qualify and what the minimum down payment might be. Not everyone wants to start their mortgage loan research with a call from a loan officer . Admittedly, U.S. Bank is not unusual in this.

    All lenders keep their best rates for the most qualified applicants, and in general, consumers with excellent credit scores will get the lowest mortgage rates. Each lender sets its own cutoff between “good” and “excellent.” U.S. Bank says that 740 is an excellent credit score.

    As such, you’ll likely need a credit score of at least 720, perhaps even 740, to land in that low rate sweet spot. Since the average credit score in the U.S. is 706, the published rates on U.S. Bank’s website won’t apply to most people.

    Us Bank Home Mortgage Full Review

    U.S. Bank is a mortgage lender that lends in all 50 states and has physical locations in 26 states. U.S. Bank offers a digital application process with the option of an in-person experience within one of its branches. U.S. Bank is the 6th largest mortgage lender with an extensive menu of mortgage products available to choose from. The mobile mortgage dashboard makes it easy to manage your account.

    The main drawback is that you cant get a rate and fee estimate before applying. However, you can prequalify all online and get an estimate without a credit check.

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