Contrary to some lenders, U.S. Bank is extremely open about where its interest rates currently stand. This could prove to be invaluable, as it will allow you to compare the full range of its many loan options with those of competitors, making the decision process much more concise. However, you may find that U.S. Bank’s interest rates don’t stack up all that well with industry leaders like Rocket Mortgage and Bank of America.
There’s not shortage of mortgage choices at U.S. Bank, though, with everything from fixed rate and adjustable-rate loans to VA and home construction loans. What perhaps makes these options even more desirable are the multiple term lengths you can choose from for each, such as 30-, 20-, 15- and 10-year fixed rate conventional loans.
|30-Year Fixed-Rate||4.625%||-||Compare Rates|
|30-Year Fixed-Rate Jumbo||4.50%||-||Compare Rates|
|15-Year Fixed-Rate||4.125%||-||Compare Rates|
|5/1 ARM||3.75%||-||Compare Rates|
Aside from the jumbo offer above, these U.S. Bank mortgage rates assume a down payment of 20% and a loan size of $175,000. On the other hand, the jumbo mortgage requires your loan to be larger than $453,100 (for single-family homes).
If you’re wondering what the difference between an annual percentage rate (APR) and interest rate is, it’s actually pretty simple. For those who want to know how much extra they’ll pay per month on their loan, the interest rate would be the number to look at. But lenders also put together the APR, which takes origination fees, insurance costs, discount points, closing costs and more into account to give you a more holistic rate.
Overview of U.S. Bank Mortgages
At U.S. Bank, there are seven conventional loans available, including four fixed rate and three adjustable-rate mortgages (ARMs). These fixed rate loans come in 30-, 20-, 15- and 10-year terms, along with 10/1, 5/1 and 3/1 ARMs. This gives you ample control in deciding exactly how you want your mortgage to play out. U.S. Bank even releases its interest rates and APRs associated with these loans so you know what you’re getting into.
Should you require a loan of at least $453,100, you’ll almost definitely need a jumbo mortgage, though this may vary depending on where your new home is located. While you won’t find jumbo ARMs at U.S. Bank, there are 30-, 20- and 15-year fixed rate loans to choose from. In general, you’ll likely need a debt-to-income ratio of no more than 45% and a FICO® credit score of 740 or higher.
Federal Housing Administration (FHA) and VA loans can also be had through U.S. Bank, though they are technically backed by the federal government at some level. VA loans almost always avoid a down payment, but are reserved for current and former members of the military. On the other hand, FHA loans boast down payments around 3.5% of the property’s value, as well as simpler loan qualification requirements.
What Your Monthly Mortgage Payments Could Be With U.S. Bank
The monthly mortgage payments below are approximate and principally based on each loan’s interest rate. However, also taken into account for these payments are a standard down payment of 20% of your home’s value, along with a presumed $175,000 loan to cover the leftover price of your new home. For the jumbo option, the loan is $500,000.
One important distinction to make is that VA loans do not require a down payment. So although the interest rate drop between a regular fixed rate loan and a VA loan might not seem very significant in the case of U.S. Bank, the lack of a need for a down payment is obviously extremely beneficial.
|Mortgage||Interest Rate||Loan Size||Your Payments|
|30-Year Fixed||4.625%||$175,000||$900/month for 30 years|
|30-Year Fixed Jumbo||4.50%||$500,000||$2,533/month for 30 years|
|15-Year Fixed||4.125%||$175,000||$1,305/month for 15 years|
|5/1 ARM||3.75%||$175,000||$810/month for 5 years; $1,264/month for 25 years|
How U.S. Bank Compares to Other Lenders
In general, U.S. Bank’s fixed rate conventional mortgage rates are about average when compared to the market overall. However, where potential clients will find the best rates are within the ARMs at this bank. As you can see in this comparison with Rocket Mortgage, Chase and Bank of America, U.S. Bank has some of the best rates for a 5/1 ARM.
|Mortgage||U.S. Bank||Rocket Mortgage||Chase||Bank of America|
|30-Year Fixed Jumbo||4.50%||-||4.625%||4.291%|
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Refinancing Rates With U.S. Bank
If your mortgage is causing you more financial stress than you intially anticipated it would, then a refinance should be on your short list. Unfortunately, though, making this move too early could leave you liable to pay for private mortgage insurance (PMI) if you haven't already. Those who own at least 20% of their home's equity will bypass this. But even if you do need PMI, refinancing can provide many perks.
Like typical mortgage interest rates, refinancing rates are based on two overarching factors: your personal financial situation and the prospective lender. So elements like your credit score, loan-to-value (LTV) ratio, mortgage point total, current level of equity, loan amount and whether the home is a primary residence or not will all factor into what rates you are offered.
Should You Get a Mortgage from U.S. Bank?
Anyone who’s interested in an ARM should definitely have U.S. Bank in the mix for consideration. There’s not much sets U.S. Bank apart from the massive pack of lenders you can choose from, though it still remains a decent option nonetheless. It has absolutely become a lender that caters to the modern borrower, so if you prefer to have access to a strong website and mobile app, U.S. Bank can provide that.
Tips for Handling a Mortgage
- The SmartAsset financial advisor matching tool sets you up with as many as three financial advisors in your area that can be there to help make the mortgage process as simple and stress-free as possible. Take a few minutes to answer some questions about your personal financial situation and you’ll be immediately paired with the matches best suited for you.
- Being knowledgeable about your credit score and past lending history can help you determine what type of interest rate you'll likely receive from a lender. This is not only an intelligent thing to do in general, it will also allow you to project what your monthly mortgage payments could be. In other words, the more you plan, the better.