U.S. Bank HELOC Review 2024
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Our Take
4.0
U.S. Bank’s HELOC stands out for a rate discount and a variable rate with an option to convert to a fixed rate, which can help keep payments predictable. It has a maximum draw of $750,000 in most states, which is a generous total compared to some other lenders, but be aware of the annual fee and early repayment penalty.
Pros
- Publishes a sample HELOC rate online.
- Offers a fixed-rate payment option.
- High maximum loan amount compared with other lenders.
Cons
- Charges a fee for early repayment.
- $75 annual fee, waived for borrowers with a certain U.S. Bank products.
Lender | Max. loan amount | Max LTV | Min. credit score | |
|---|---|---|---|---|
$400,000 | 85% | 640 | Visit Lenderat Figure at Figure | |
$750,000 | 80% | 580 | Visit Lenderat New American Funding at New American Funding | |
$350,000 | 80% | 680 | Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC |
Full Review
U.S. Bank HELOC rates and discounts
Most home equity line of credit, or HELOC, interest rates are indexed to a base rate called the prime rate. The annual percentage rate, or APR, that you’re offered will include a margin the lender has added to the prime rate. Offered margins depend largely on factors like your credit score, your existing debt and the amount you wish to borrow, but they will vary by lender.
Current prime rate | Prime rate last week | Prime rate in the past year — low | Prime rate in the past year — high |
|---|---|---|---|
8%. | 8.50%. | 8%. | 8.50%. |
On its website, U.S. Bank publishes a sample HELOC rate based on property location. The lender’s advertised rate was 9.05% for a borrower in California with a credit limit of $50,000 or more and a credit score of 730 or higher on the day we checked. U.S. Bank does not publish a maximum combined loan-to-value ratio on its website, but it reports that HELOC maximum CLTV is 80%. CLTV, or combined loan-to-value ratio, is the balance of all mortgage debt divided by the home value and is used to determine how much a homeowner can expect to borrow with a HELOC.
The lender offers a rate discount for borrowers who have or who open a checking account with U.S. Bank, though customers in some states can potentially get the lowest rate without a checking account.
Applying for a U.S. Bank HELOC
U.S. Bank allows borrowers to apply for a HELOC online, in person at a branch office or by phone. On the day we called, it took less than a minute to reach an advisor familiar with the HELOC process. To apply for a HELOC, you’ll need to supply some personal information, as well as income data and financial and tax details about your home. U.S. Bank does not offer a live chat to answer borrower questions on its website.
Opening and using a U.S. Bank HELOC
No matter how you apply for a HELOC from U.S. Bank, you’ll close the line of credit in person at a bank branch. Once approved, funds are available after a wait of three business days, a requirement to consider if you are in a rush to secure funds. The lender offers a HELOC draw period of 10 years, with a repayment period of 10, 15 or 20 years. Customers can access HELOC funds in several ways:
Via transfer to a U.S. Bank checking account.
By withdrawing cash from an ATM.
In person at a branch.
With bank-issued convenience checks.
From a Visa access card that can be used at points of sale.
The lender allows borrowers to convert some or all of their HELOC balance from a variable rate to a fixed rate, which can help keep payments predictable.
» MORE: Best HELOC lenders
Alternatives to a U.S. Bank HELOC
Bank of America offers a HELOC up to $1 million with no annual fees or closing costs and discounts for bank customers, and PNC Bank offers a HELOC with flexible rate-lock options.
HELOCs offer a flexible way to access home equity over a period of time and pay interest only on the funds you withdraw. However, rising interest rates can bump up your monthly payment, and, as with credit cards, it takes discipline to avoid overspending.
Alternatives to home equity lines of credit include a home equity loan, which offers a lump sum with a fixed rate, or a cash-out refinance, which replaces your existing mortgage with a larger loan. U.S. Bank offers a home equity loan as well as a cash-out refinance option.
NerdWallet’s HELOC star ratings are awarded by the editorial team based on the following evaluated factors: combined loan-to-value ratio, lender fees, transparency on key factors, whether a fixed-rate option is available, rate discounts, ease of application, whether a prepayment penalty may apply and whether an initial draw is required.
