U.S. Bank Home Equity Loan Review 2024
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Our Take
3.5
U.S. Bank’s home equity loan stands out for having no application fee or closing costs. However, its 80% loan-to-value borrowing limit is less generous than many other lenders, and loans are only available in two term lengths: 10 or 15 years. Sample rates are easy to find online, and a rate discount is available for customers who autopay from a U.S. Bank checking or savings account.
Pros
- No application fee or closing costs.
- Sample rates customizable by location are posted online.
- Rate discount for banking customers.
Cons
- Maximum loan amount is 80% of home equity.
- Only two term lengths: 10 or 15 years.
- Not available in Delaware, South Carolina and Texas.
Full Review
U.S. Bank home equity loan rates and transparency
Most home equity loan interest rates are affected by the movement of a base rate called the prime rate. Your rate will include a margin the lender has added to the prime rate. These margins depend largely on factors like your credit score, your existing debt, your income and the amount you wish to borrow. 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 |
|---|---|---|---|
7.75% | 8% | 7.75% | 8.50% |
U.S. Bank publishes sample home equity loan rates on its website, and you can customize them by state and county. On the day we checked, the APR for a 15-year home equity loan in Los Angeles County, California, was 7.65%. Keep in mind that these published rates assume a relatively low loan-to-value ratio and a credit score of at least 730. The interest rate you qualify for could vary. The lender also offers a home equity loan rate discount of 0.5 percentage point for borrowers who make automatic payments from a U.S. Bank account.
Applying for a U.S. Bank home equity loan
Homeowners can apply for a home equity loan online, in person or by phone. To qualify, a borrower will need at least a “good” credit score, generally around 660 or higher. U.S. Bank doesn’t charge an application fee for home equity loans. However, an appraisal is required.
The customer service phone number is easy to find on the lender’s website. You can also schedule a call at a time that’s convenient for you. We had to dig a little to find U.S. Bank’s option for live customer service chat, but it is available for customers in the logged in experience online or in the mobile app.
What you should know about U.S. Bank home equity loans
U.S. Bank allows qualified homeowners to borrow up to 80% of the equity in their homes, a modest percentage compared to other lenders we review. Qualified homeowners can borrow a minimum of $25,000, a maximum of $750,000 in most states and up to $1 million in California with a U.S. Bank home equity loan. On the plus side, the lender doesn’t charge closing costs.
U.S. Bank home equity loans are not available for properties in Delaware, South Carolina and Texas.
» MORE: Best home equity loan lenders
Alternatives to a U.S. Bank home equity loan
CrossCountry offers a higher loan-to-value ratio, allowing borrowers to access up to 90% of their home equity. Discover Home Loans also doesn’t charge closing costs or an application fee, and offers a wider range of repayment term lengths.
Home equity loans let homeowners access a lump sum by converting equity into debt. You’ll repay the loan at a fixed interest rate over an agreed period of time. Alternatives to a home equity loan include a home equity line of credit (HELOC) or a cash-out refinance. HELOCs offer greater flexibility to withdraw funds, up to the credit limit, as needed, but often have adjustable interest rates. A cash-out refinance replaces your existing mortgage with a larger loan. It will be most appealing if mortgage rates are lower than your current rate, and closing costs will apply.
U.S. Bank offers both a home equity line of credit and a cash-out refinance option.
NerdWallet’s home equity loan star ratings are awarded by the editorial team based on the following evaluated factors: maximum combined loan-to-value ratio, available terms, closing costs, application fees, appraisal requirements, interest rate transparency, digital application availability, customer support experience and whether the lender has been subject to government penalties exceeding $1 million.
