U.S. Bank HELOC Review 2024
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Our Take
5.0
U.S. Bank’s HELOC stands out for a preferred rate discount and 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 generous compared to some other lenders. However, the lender charges an annual fee and early repayment penalty.
Pros
- Online tool lets you customize sample rate by location.
- Offers a fixed-rate payment option.
- High maximum loan amount compared with other lenders.
Cons
- Charges a fee for early repayment.
- Annual fee up to $75 (waived for certain banking customers).
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
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 that the lender has added to the prime rate. These 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 |
|---|---|---|---|
7.75% | 8% | 7.75% | 8.50% |
U.S. Bank publishes a sample HELOC rate based on location on its website. On the day we checked, the lender’s advertised rate was 8.55% for a borrower with this profile:
Located in Los Angeles
Credit limit of $50,000 or more
Loan-to-value of ratio of 60%
Credit score of 730 or higher
The lender offers a rate discount for borrowers who have or open a checking account with U.S. Bank, though customers in some states can potentially get the lowest rate without a checking account. U.S. Bank 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.
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. 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. For existing customers, U.S. Bank offers live customer service chat to those logged in on the website or in the mobile app.
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 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. In most states, homeowners can borrow a minimum of $25,000 and up to $750,000. In California, the maximum draw is $1 million. 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
U.S. Bank does not publish a maximum combined loan-to-value ratio on its website but reports to NerdWallet that its HELOC maximum CLTV is 90%. 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.
U.S. Bank does not charge origination or transaction fees. However, it does charge an application fee of up to $75. This fee is waived for customers with U.S. Bank Platinum checking accounts, or those enrolled in the lender’s Smart Rewards Program.
» MORE: Best HELOC lenders
Alternatives to a U.S. Bank HELOC
PNC Bank offers a HELOC with no origination fee and a repayment term up to 30 years, but it does charge transaction fees. TD Bank also offers a fixed-rate repayment option.
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 both a home equity loan and a cash-out refinance option.
NerdWallet’s HELOC star ratings are awarded by the editorial team based on the following evaluated factors: HELOC volume, combined loan-to-value ratio, whether a fixed-rate option is available, lender fees, initial draw requirements, flexibility of draw and repayment terms, digital application availability, customer support options and transparency to consumers on key factors. A recent regulatory action against a lender may affect its HELOC star rating.
