US Bank Mortgage Review for 2020

US Bank is the 5th largest bank and 10th 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

  • Wide range of mortgage products offered
  • Options to apply in person or fully online
  • Offers construction loans and investment property loans

Drawbacks

  • Higher mortgage rates on average
  • Smaller branch network than some other large banks

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 tenth biggest lender by volume in 2019.

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.


US Bank mortgage rates

Below, you can see how US Bank mortgage rates compare to other top lenders. Its rates seem a bit higher on average.

Note, averages shown in this table are from 2019, the latest data available.

Rates have fallen significantly since then, so these do not reflect current mortgage and refinance rates. It’s simply a tool to compare lenders side by side.

Average 30-year mortgage rates at major lenders

 
US Bank
Wells Fargo 
Quicken Loans
Chase
Average 30-Year Interest Rate, 2019
4.66% 4.22% 4.16% 4.22%
Monthly P&I Payment*
$1,032 $980 $973 $980
Median Loan Costs, 2019
$3,702 $3,484 $5,075 $3,440
Median Origination Charge, 2019
$1,175 $1,199 $2,085 $1,279

Average rate and fee data were sourced from public rate and fee records required by the Home Mortgage Disclosure Act (HMDA).

*Monthly principal and interest payment based on a $250,000 home price, with 20% down, at each company’s average 30-year interest rate for 2019. Your own rate and monthly payment will vary.

Verify your new rate (Oct 24th, 2020)

US Bank mortgage review for 2020

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

A couple of things worth noting about US Bank’s mortgage program:

  • It offers construction loans for people that want to build their homes instead of buying one. Not all lenders do
  • It will partner with down payment assistance programs to help approve first time buyer who’ve had a hard time saving a big down payment
  • It offers a no-closing-cost refinance called the “Smart Refinance” with loan terms up to 20 years

The biggest drawback we saw with US Bank is that its mortgage rates appear to be higher than other major lenders on average.

However, rates vary widely from one borrower to the next. If US Bank likes the look of your credit score, down payment, and application, it may well offer you the lowest rate of any lender you apply to.

You never know who can offer you the lowest rate until you’ve checked with a few lenders. That’s why it’s so important to compare rates before you buy.

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 part way 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.

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

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

Company
Mortgage Originations 2019
CFPB Complaints 2019
Complaints Per 1,000 Mortgages
2019 JD Power Rating
US Bank
380,700  85 0.22 846/1,000
Wells Fargo
1,026,800 342 0.33 837/1,000
Quicken Loans
774,900 187 0.24 880/1,000
Chase
527,600 188 0.36 850/1,000

US Bank’s customer review score improved from 785/1,000 in J.D. Power’s 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.

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 

US Bank is licensed to lend in all 50 states.

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

  • Apply digitally through US Bank’s fully-functional online portal, available on desktop and mobile
  • Call a US Bank loan officer and apply over the phone
  • Meet with a loan officer in person at one of US Bank’s 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 you’ll 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

Is US Bank the best mortgage lender for you?

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.

However, US Bank mortgage rates appear to be on the higher end, at least on average. So make sure you compare personalized rates from a few other lenders before choosing.

That’s the best way to find a low rate and big savings on your home loan.

Verify your new rate (Oct 24th, 2020)

Compare to These Lenders

Minimum down payment: 0%
Minimum credit score: N/A
Minimum down payment: 3%
Minimum credit score: 580
Minimum down payment: 3%
Minimum credit score: 580

Sources:

  1. Average mortgage rates and fees sourced from self-reported data mortgage lenders are required to file under the Home Mortgage Disclosure Act. Rates and fees shown reflect the previous year’s data and may not align with today’s mortgage rates
  2. Monthly principal and interest payments calculated using TheMortgageReports.com mortgage calculator. Payments shown are based on a $200,000 loan amount and assume a “very good” credit score. Property taxes and homeowners insurance are not included. Your own monthly payment will vary
  3. Number of mortgage originations for the previous year sourced from self-reported data mortgage lenders are required to file under the Home Mortgage Disclosure Act
  4. CFPB Complaints reflect the number of mortgage origination or closing-related complaints filed with the Consumer Financial Protection Bureau for the previous year
  5. Complaints per 1000 mortgages reflect the number of official complaints filed against a lender with the CFPB for the previous year, compared to the lender’s total number of mortgage originations for the previous year
  6. JD Power Rating reflects the company’s customer satisfaction score according to JD Power’s most recent Primary Mortgage Origination Satisfaction Study. Survey respondents score their lenders in four areas: application/approval process, communication, loan closing, and loan offerings