US Bank Mortgage Lender Review for 2020

US Bank is the fifth-largest bank and eighth-largest mortgage lender in the U.S. But is it the right choice for you? Find out here.

Lending flexibility 3.5
Customer service 3.5
Ease of application 3.0
Online experience 4.5
Minimum down payment 3%
Minimum credit score 620
Loan Products Offered

Fixed-rate mortgage
Adjustable-rate mortgage
Jumbo mortgage
FHA mortgage
VA mortgage
USDA mortgage

Best Features

  • Branch network, spread over 26 states, serves many areas not covered by competitors
  • Wide range of mortgage products offered
  • Online portal offers application functionality on desktop and mobile

Drawbacks

  • Scores poorly for customer service compared to other big banks
  • Not the cheapest option for many borrowers

Overview

With a history going back more than 150 years, Minnesota-based US Bank is a major player in financial services.

Indeed, it claims to be the fifth-largest bank in the country. And when it comes to mortgages, US Bank was the eighth biggest lender by volume in 2017, when it set up nearly 100,000 loans.

However, the fact that lots of borrowers choose US Bank doesn't automatically mean it's the best mortgage company for you. That choice comes down to who can offer you the lowest rate and best terms on your home loan.

Read up on the pros and cons and check rates to see whether US Bank is the right lender for your mortgage.


Compare US Bank mortgage rates

Mortgage rates and fees from US Bank are not especially low. As with many other big lenders, US Bank doesn’t stand out for the cheapness of its loans.

That’s not to suggest it’s wildly uncompetitive. But you’ll be lucky if it turns out to be your best deal.

Prices are better for new and existing customers. If you have a checking account package with US Bank, you can often get a discount on mortgage closing costs.

30-year fixed-rate mortgage estimates at major banks

 
US Bank
Quicken
Bank of America
Wells Fargo
Interest Rate1
3.38% 3.375% 3.375% 3.625%
APR2
3.44% 3.652% 3.543% 3.742%
Mortgage Points3
0.862 2.25 0.488 0.375
Monthly P&I Payment
$885 $884 $884 $912

We compared US Bank side-by-side with the biggest banks and lenders in the U.S., and found that its rates and monthly payments fall on the higher side of ‘average.’ However, rates can vary widely based on the types of clients and programs a lender specializes in.

Rates shown here are current as of 2/28/2020. Monthly principal and interest payments are based on a home price of $250,000 and down payment of 20% for a home located in Washington. 

These numbers are a snapshot meant for general comparison only. Your own mortgage costs will vary depending on your loan, your finances, the economy and other factors

Verify your new rate (Jul 5th, 2020)

US Bank mortgage review for 2020

US Bank offers a wide range of mortgages and plenty of options for how you apply.

With rates and closing costs hovering around average, it’s also a strong competitor with other major mortgage lenders.

However, US Bank has one big drawback (at least at the time of publishing this review) — it gets poor customer reviews from mortgage borrowers.

With any mortgage lender, service will vary by location and individual loan officer. US Bank might still be a good option if its costs are competitive. Just make sure you find a loan officer that meets your customer service standards.

Working with US Bank mortgage

US Bank revamped its website recently — and it’s a huge improvement over its old one.

The online portal lets you begin a home loan application on your laptop or mobile device, save it partway through, and pick back up on any device when you have a moment. You can also upload documents securely.

The site also provides plenty of information about different loan choices, including current average mortgage rates.

US Bank mortgage review, US Bank branch presence - The Mortgage Reports

US Bank has a good branch network, with an especially strong presence in the Midwest. Image: US Bank

Those who prefer working with a human can apply at a local branch across the desk from a specialist advisor. Or you can talk to an advisor through US Bank’s call center.

If you opt to make a face-to-face application, you need to be sure you have a local branch. US Bank’s network is smaller than many of its competitors.

That said, US Bank has a leg up in the Midwest, where its physical presence is stronger than other major lenders like Chase and PNC.

US Bank customer service reviews

At least in the past, US Bank hasn’t been a shining example of customer service. Maybe its new website will help it improve. But we’ll have to wait to see.

Company
Mortgage Originations4
CFPB Complaints5
Complaints per 1,000 mortgages6
2018 JD Power Rating7
US Bank
96,000 73 0.76 785/1,000
Quicken Loans
396,000 170 0.43 876/1,000
Wells Fargo
312,000 419 1.34 817/1,000
Bank of America
111,000 235 2.12 849/1,000

In the J.D. Power 2018 U.S. Primary Mortgage Origination Satisfaction Study, US Bank came 22nd out of 22 for customer satisfaction. It scored 785 out of a possible 1,000, which was way below the industry average of 836.

That said, US Bank doesn’t get too many official complaints from its customers.

The Consumer Financial Protection Bureau, which records mortgage complaints nationwide, shows that US Bank has fewer issues than other big banks like Wells Fargo and Bank of America.

That might suggest that although US Bank’s customer service doesn’t excel, there aren’t too many severe problems, either.

Mortgage loan products at US Bank

US Bank’s website provides plenty of information about the mortgages it offers. These include:

  • Fixed-rate mortgages — Besides the usual 30-year term, you can opt to borrow for 10, 15 or 20 years, letting you become mortgage-free earlier
  • Adjustable-rate mortgages — You can choose to fix your rate for an initial period of three, five or 10 years, after which your rate floats with the market
  • FHA loans — You can make a down payment as low as 3.5 percent and have less-than-pristine credit with these loans, which are backed by the Federal Housing Administration
  • VA loans — Qualifying veterans and service members can borrow with zero down payment and no continuing mortgage insurance payments
  • USDA loans — These loans are meant for low- to moderate-income people in qualified rural areas. Buyers can qualify for a USDA loan with 0% down payment
  • Jumbo loans — When you want to borrow more than the cap for conventional loans, which is $510,400 in most areas

The bank also advertises investment property loans and new construction and lot loans for those that plan to rent out their property or build an entirely new one.

US Bank construction loans

US Bank offers construction loans for those who want to build their new home instead of buying it. These are different from mortgage loans. 

A US Bank construction loan is a “short-term, interim loan” that pays the builder in installments as the house is being built. During that time, the borrower pays only interest on the loan (also known as an “interest-only payment”). 

Once construction is finished, the borrower has to either pay off the loan in cash or use a traditional mortgage to cover the cost of the home. 

US Bank offers a few types of construction loans to fit different budgeting needs. However, there’s little information about these available. US Bank prefers you speak directly with one of its loan officers about construction loan options.  

In addition, interest rates on construction loans are higher than interest rates on mortgages, because there’s no property for the loan to be secured against.

US Bank Smart Refinance

The US Bank Smart Refinance is a type of no-closing-cost refinance. It’s available with fixed rates and a loan term up to 20 years. You can apply for the US Bank Smart Refinance refinance online, over the phone, or at a US Bank branch.

Remember, “no-closing-cost” does not mean there are no costs associated with your refinance. It either means the fees and closing costs are rolled into the loan amount or the interest rate is increased to pay for costs. Either way, you pay them over time instead of upfront.

Where can you get a mortgage with US Bank?

NMLS license number: 402761 

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

The bank has clearly invested so much in its new web portal that it seems almost a shame not to use it. It’s certainly rich in functionality. Indeed, the only service it seems to lack is the ability to chat online with an advisor.

Still, the site provides a phone number you can call if you need help. And there’s a short video (“Can I apply for a mortgage online?”) that explains the process.

US Bank’s branch network has strengths and weaknesses. With 3,000+ brick-and-mortar sites, it can’t compete with other big-name banks that have many more.

However, many of the 26 states in which it has a physical presence are underserved by those competitors. If you live in one of those states, and want to make a face-to-face application with a really big financial institution, you may have found what you’re looking for here.

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

Is US Bank the best mortgage lender for you?

It’s reasonable for US Bank’s sub-par customer reviews to give you pause. But remember that the experience with any mortgage lender can vary widely depending on the individual loan officer you work with.

If you already have a relationship with US Bank via checking or savings accounts, or even have a prior relationship with a US bank loan officer, this bank could be a great option for your mortgage.

Just remember to compare rates from a few different mortgage companies before settling on a lender. That’s the best way to find a low rate and big savings on your home loan.

Compare personalized rate quotes. Start here (Jul 5th, 2020)

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  1. Interest Rate: The rate you pay in interest per year based on the current loan balance.
  2. APR: The total cost of getting the loan including the interest rate and closing costs.
  3. Discount Points: Mortgage points, also known as discount points, are fees paid directly to the lender at closing in exchange for a reduced interest rate. - Read More
  4. Mortgage Originations: The number of mortgages this lender closed. The most recent data available is from the 2017 Mortgage Market Activity and Trends, Consumer Financial Protection Bureau (CFPB), published May 2018.
  5. CFPB Complaints: The number of mortgage origination or closing related complaints filed with the Consumer Financial Protection Bureau in 2018. We ignore complaints about issues that don't concern mortgage applications and closings, such as loan servicing, since some lenders don't service loans and therefore would have an unfair advantage in complaint numbers.
  6. Complaints per 1000 mortgages: The number of mortgage-related complaints compared to this lender's total mortgages originated. Due to data availability, we're comparing 2017 originations with 2018 complaints to arrive at the number of complaints per 1000 mortgages originated.
  7. JD Power Rating: On a 1,000 point scale, consumer insight company JD Power scores large banks across six factors: channel interactions, deposit accounts, credit accounts, investment accounts, convenience, and problem resolution.