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U.S. Bank Home Equity Loans Review
By Victor Rosario MONEY RESEARCH COLLECTIVE
While it didn’t make it into our list of best home equity loan lenders, U.S. Bank is one of the largest banks in the United States and a highly-rated financial institution. It provides a broad range of products and services for individuals and businesses.
In the home equity market, the institution has multiple offerings, including home equity loans and home equity lines of credit, which are a good way to take advantage of your home’s equity to cover big expenses while enjoying lower interest rates than those associated with personal loans.
Table of Contents
- U.S. Bank’s services
- U.S. Bank’s credentials
- U.S. Bank’s accessibility
- U.S. Bank’s customer satisfaction
- U.S. Bank FAQs
- How we evaluated U.S. Bank
- Summary of SacBee’s U.S. Bank review
U.S. Bank home equity loans overview
- Wide range of home equity products available, including home equity loans and lines of credit
- Interest on its home equity loans and lines of credit may be tax deductible
- 0.50% rate discount when you set up automatic payments with a U.S. Bank checking or savings account
- Apply online, over the phone, or at a branch
- Only has physical branches in 26 states
- Long history of complaints filed on the CFPB database
U.S. Bank offers a wide array of home equity products, including both home equity loans and home equity lines of credit (HELOC) for homeowners nationwide. It also offers cash-out refinance and its proprietary Smart Refinance option. Home equity products usually have a lower rate than other personal loans, since they use your home as collateral.
The company’s home equity line of credit (HELOC) ranges (as of August 8, 2022) from 5.70% to 10.10% annual percentage rate (APR), with the lowest rate assuming a credit limit of $100,000, a loan-to-value ratio (LTV) of 70%, a FICO credit score of 730 and a U.S. Bank checking account. The loan has a 10-year draw period, during which you have the option of selecting a minimum monthly payment of — if you qualify.
After the draw period ends, the repayment period begins, in which you must make principal and interest payments. The repayment terms may vary depending on your state, credit history and the value of your home. The fixed rate option allows you to lock in your variable rate into a fixed interest rate, which can benefit borrowers who want to avoid the instability of a variable interest rate.
The company also offers home equity loans with an APR as low as 6.10% for 10 or 15-year loan terms. This might be preferable if you need a large lump sum of money right away, and can be used for a number of major expenses, including home improvement projects and debt consolidation, among others.
U.S. Bank’s loan options also include cash-out refinance and its Smart Refinance, which incurs no closing costs and has an APR of as low as 5.79% for 5, 10, 15, or 20 years at a fixed interest rate.
The lender charges a $395 application fee, but that fee is refunded as a credit once you close. For loans that have closing costs, which include the application as well as origination fees and property insurance, you can expect between 2% and 5% of the loan amount. There are no closing costs associated with home equity loans or lines of credit.
Requirements to get a home equity loan with U.S. Bank include:
- Home equity
- Verifiable income
- Social Security number
- Mortgage statement
- Property tax bill
- Copy of your homeowner’s insurance policy
U.S. Bank’s services
U.S. Bank offers close to every type of home loan, including home equity, FHA, VA, jumbo and USDA loans.
What’s offered
- Home equity loans
- Home equity line of credit (HELOCs)
- Cash-out refinance loans
- Conventional loans
- FHA loans
- VA loans
- Adjustable-rate mortgages
- Jumbo loans
- USDA loans
- New construction loans
U.S. Bank’s credentials
U.S. Bank’s parent company, U.S. Bancorp, was founded in 1863 and based out of Minneapolis, Minnesota. As such, it is one of the oldest active national bank charters in the nation. The company is rated highly by credit agencies such as Standard and Poor’s and Moody’s, although it has a lengthy history of complaints registered with the Consumer Financial Protection Bureau (CFPB).
Licenses and registrations
U.S. Bank National Association is registered with the Nationwide Mortgage Licensing System and Registry (NMLS). Its NMLS ID is 402761.
Third-party ratings
U.S. Bank’s financial strength ratings evidence its ability to meet its long- and short-term financial obligations.
| U.S. Bancorp | Moody’s | S&P | Fitch | DBRS |
| Long-term issuer rating | A2 | A+ | AA- | AA |
| Short-term issuer rating | N/A | A-1 | F-1 | R-1 (middle) |
| U.S. Bank National Association | Moody’s | S&P | Fitch | DBRS |
| Long-term issuer rating | A1 | AA- | AA- | AA (high) |
| Short-term issuer rating | P-1 | A-1+ | F1+ | R-1 (high) |
Regulatory or legal actions
U.S. Bancorp has 2,193 complaints registered on the Consumer Financial Protection Bureau (CFPB) database in the last calendar year, of which 33 are related to home equity loans or home equity lines of credit (HELOCs).
Most recently, the CFPB issued a consent order to U.S. Bank National Association over allegations that the bank pressured and incentivized its employees to open unauthorized accounts, in violation of the Consumer Financial Protection Act, the Fair Credit Reporting Act, the Truth in Lending Act and the Truth in Savings Act. The bank will pay a $37.5 million penalty and offer customer remediation to those affected.
U.S. Bank’s accessibility
U.S. Bank offers home loan products in all 50 states and provides customer service over the phone or in person at any of its physical locations in 26 states.
Availability
The company has physical branches in 26 states, although it offers its home loan products nationwide. The states U.S. Bank currently has branches in are:
- Arizona
- Arkansas
- California
- Colorado
- Florida
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Minnesota
- Missouri
- Montana
- Nebraska
- Nevada
- New Mexico
- North Dakota
- Ohio
- Oregon
- South Dakota
- Tennessee
- Utah
- Washington
- Wisconsin
- Wyoming
Contact information
You can contact U.S. Bank 24/7 at 800-872-2657. The company’s website also allows you to make an appointment for a virtual, phone or in-person appointment.
User experience
You can apply for a home equity loan or a home equity line of credit (HELOC) through the company’s online banking platform or by calling 844-630-0782. You can also submit a request online to receive a call from U.S. Bank, or visit one of its 2,000+ branches in person.
Limitations
U.S. Bank provides customer service accommodations for individuals who are deaf, hard of hearing or have speech impediments. Although it doesn’t provide a fully translated website for Spanish speakers, its mobile app is available in Spanish.
U.S. Bank’s customer satisfaction
The company ranks high in J.D. Power’s retail banking survey, but has a low rating on Trustpilot.com and its profile on the Better Business Bureau website is empty.
Customer complaints
At the time of writing, U.S. Bank’s profile is being updated on the Better Business Bureau website, which means neither its rating nor its customer reviews are available.
The financial institution has a low rating on Trustpilot.com (1.3 out of 5 stars), with most negative customer reviews focusing on customer service issues and the company’s numerous complaints registered with the Consumer Financial Protection Bureau (CFPB).
Third-Party Ratings
U.S. Bank ranked first in California in the J.D. Power U.S. Retail Banking Satisfaction Study in both 2021 and 2022.
U.S. Bank FAQs
Is it hard to get a home equity loan at U.S. Bank?
Getting a home equity loan through U.S. Bank can be a fully online experience, but you also have the option to call or visit one of U.S. Bank's branches.
When considering your application for a home equity loan or line of credit, the lender will take into account the following:
- The equity you have in your home
- Your income
- Your Social Security number
- Your current mortgage balance
- You property tax bill
- A copy of your homeowner's insurance policy
What are the benefits of a U.S. Bank home equity loan?
People who have automatic payments deducted from their U.S. Bank checking or savings accounts receive a 0.50% rate discount on their home equity loans.
How long does it take to get a home equity loan through U.S. Bank?
While the length of time to process the application can vary, funds will be available after a waiting period of three business days.
How we evaluated U.S. Bank’s home equity loans
For this review, we looked at U.S. Bank’s home equity loan products, taking into account the lender’s rates, annual charges, fees and closing costs. We also considered the company’s financial stability, online customer reviews and third-party ratings.
Please note that rates, fees and third-party ratings are subject to change and may have done so since the publication of this review.
Summary of SacBee’s U.S. Bank review
U.S. Bank offers a variety of loan products, and its home equity rates are competitive. The fact that the institution only has a physical presence in 26 states might be a hindrance to some, although its home equity products are available nationwide and its application process can be completed fully online.
That being said, its history of complaints on the Consumer Financial Protection Bureau, combined with its low customer review ratings, leave a lot to be desired. And while J.D. Power has ranked it first in customer satisfaction in the California region multiple times, the bank has also recently received a consent order from the CFPB for unlawful acts or practices.
For more home equity options, check out our list of best home equity loans.
