As the seventh largest U.S. mortgage lender in 2022, U.S. Bank is a major player in the mortgage market and brings a wealth of experience to the table. The company offers a variety of home loan refinancing products, including traditional mortgage loan refinancing, cash-out refinancing, jumbo loan refinancing, VA loan refinancing and FHA loan refinancing. U.S. Bank's diverse range of loan options and competitive rates make it a strong option that’s worth consideration for many borrowers.
Read on to learn if U.S. Bank is the right lender for your loan refinance needs.
Best for customers with an existing U.S. Bank mortgage
If you already use U.S. Bank, you may be able to take advantage of a special mortgage discount offer only available to existing customers. This discount offers a customer credit of 0.25% of the loan amount — up to a maximum of $1,000 — deducted from the closing costs of your new mortgage.
U.S. Bank mortgage refinance pros and cons
- Discounts on closing costs for existing customers
- Provides detailed sample rates by state
- No closing costs with Smart Refinance option
- Below average customer satisfaction ratings
- Credit score and eligibility requirements not listed
- Sample rates for refinance loans assume a credit score of 740 or higher
Discounts on closing costs for existing customers
U.S. Bank offers a great deal for existing customers who are looking to refinance their mortgage, providing them with discounts of up to 0.25% of the loan amount deducted from closing costs (up to $1,000). This deal is only available for customers with an existing U.S. Bank mortgage, a U.S. Bank Smartly™ Checking account or an existing Gold or Platinum Checking Package.
Detailed sample rates by state
U.S. Bank provides a detailed list of sample refinance mortgage rates. These can either be a national average or can be broken down by state for more localized information.
No closing costs with Smart Refinance option
U.S. Bank's Smart Refinance option allows you to refinance your mortgage without having to worry about various lender fees and costs. Smart Refinance loans come with no closing costs, origination fees, prepayment penalties or application processing fees. Additionally, this loan option allows you to tap into your home's equity and access cash for various needs.
Below average customer satisfaction ratings
In J.D. Power's 2022 U.S. Mortgage Origination Satisfaction Study, U.S. Bank ranked below average in customer satisfaction with a score of 685 out of 1,000, with the industry average being 716. In terms of customer satisfaction, this puts the financial institution near the bottom of the list among leading U.S. lenders.
Credit score and eligibility requirements not listed
U.S. Bank doesn’t list the minimum credit score or other eligibility requirements for its mortgage refinance products on its website, which can make it difficult for potential customers to quickly determine their eligibility.
Sample rates assume high credit score
The sample rates for refinance loan products listed on U.S. Bank's website assume a credit score of 740 or higher. This can be misleading to customers with lower credit scores, as loan rates may end up being significantly higher than what's displayed online.
U.S. Bank mortgage refinance offerings
U.S. Bank offers cash-out refinancing, traditional mortgage loan refinancing, VA loan refinancing, jumbo loan refinancing and FHA loan refinancing. It also offers Smart Refinance, a unique refinancing product that allows customers to lock in a competitive rate without paying steep upfront fees. Each of these loans comes with different terms and conditions, so it's important to research which loan option is best for you.
The following section examines some of U.S. Bank's most popular loan refinance products in greater detail.
Traditional mortgage loan refinance
U.S. Bank's traditional mortgage loan refinancing offers rate and term refinances, meaning you can adjust the interest rate, length and monthly payments of your loan. Traditional rate and term refinances are typically done to lower a loan's interest rate, decrease the monthly payment amounts or switch from an adjustable-rate mortgage to a conventional fixed-rate mortgage. Unlike a cash-out refinance, you are left with the same loan balance after a traditional refinance.
U.S. Bank offers these loans for both fixed-rate and adjustable-rate conventional mortgages as well as many of its government loan programs. Details on credit score requirements are hazy, with the lender stating that some loans have a minimum credit score requirement of 620 while other loans have lower requirements. The bank also suggests that borrowers have a minimum of 20% equity in their home before considering whether or not to refinance and notes that closing costs are likely to amount to between 2% and 5% of the loan amount.
U.S. Bank's cash-out refinance loans are a good choice for a homeowner looking to access the equity in their home. This type of loan replaces your existing loan with a new loan for more than what's owed, allowing you to take cash out of your equity up to a certain loan-to-value ratio, which is typically no more than 80%.
Interest rates on cash-out refinance loans tend to be higher than those on traditional mortgage refinance loans as there's a higher risk involved for the lender. The money taken out of the home can be used for any reason, including home improvement projects, debt consolidation, college tuition and more. The company offers cash-out refinancing for both fixed-rate and adjustable-rate mortgages as well as government loan programs.
Jumbo loan refinance
U.S. Bank also offers options for jumbo loan refinancing, which can be used to refinance a mortgage loan amount that's higher than the conforming loan limit set by Fannie Mae and Freddie Mac (typically $726,200). U.S. Bank's jumbo loan refinances come as fixed-rate loans with either 15-, 20- or 30-year terms. The company has a minimum credit score requirement of 740 for these loans, but in some instances, credit scores as low as 660 will be considered. Your debt-to-income (DTI) must be 45% or lower, but under certain conditions, the bank accepts DTI ratios as high as 50%. For jumbo loan refinancing through U.S. Bank, you must have at least two months of reserves to demonstrate your ability to keep up with your mortgage payments.
VA loan refinance
U.S. Bank also offers VA loan refinancing options specifically for borrowers who are veterans, current members of the armed forces or eligible surviving spouses. If you qualify, you can take advantage of lowered interest rates, no down payments and no private mortgage insurance requirement.
U.S. Bank offers two different VA loan refinance programs: (1) the VA streamline refinance loan and (2) VA cash-out refinance loan. The VA streamline refinance loan — also known as the VA Interest Rate Reduction Refinance Loan (IRRRL) — lets you refinance your existing VA loan to a reduced interest rate, a lower monthly payment or a different loan term without the need to provide additional credit documentation. The VA cash-out loan allows you to refinance your existing VA loan and take out an additional amount of money up to 100% of the value of the home minus any liens on it. U.S. Bank also allows veterans to refinance their conventional mortgage into a VA loan or vice versa.
FHA loan refinance
FHA loans are insured by the Federal Housing Administration and are designed for first-time homebuyers or those with low credit scores. U.S. Bank offers the FHA streamline refinance loan, which is a simplified refinance process for borrowers who currently have an FHA loan. This type of loan lets you reduce your interest rate, lower your monthly payment or switch from an adjustable-rate mortgage to a fixed-rate mortgage. U.S. Bank states that all its FHA loans require private mortgage insurance, even if you already have 20% or more equity.
U.S. Bank mortgage refinance pricing
According to the sample rates provided on its website, U.S. Bank's mortgage refinance interest rates appear to closely mirror national averages. While this suggests that you might not get the absolute lowest rates with U.S. Bank, it also indicates that you likely won't be overpaying for your loan either. Unfortunately, little information is listed about the company's closing costs and fees other than explaining that borrowers should expect them to cost between 2% and 5% of the loan amount. The company's discount of up to $1,000 off closing costs for certain existing customers may help offset these expenses.
U.S. Bank mortgage refinance financial stability
U.S. Bank is part of U.S. Bancorp, one of the largest financial holding companies in the United States and a recognized leader in consumer banking. The following are the company's ratings from leading credit rating agencies.
- Standard & Poor's: A
- Moody's Investors Service: A3
- Fitch Ratings, Inc.: A+
Additionally, U.S. Bancorp is a publicly traded company with a market capitalization of more than $56 billion that’s seen its revenue increase from $11.77 billion in 2000 to $26.91 billion in 2022, representing growth of 128.6%. These ratings and earnings indicate that U.S Bank has a strong financial standing and is likely to remain stable for the foreseeable future.
U.S. Bank mortgage refinance accessibility
U.S. Bank provides mortgages and refinancing loans in all 50 states and Washington, D.C. Additionally, it has branches in all U.S. states except for Hawaii.
You can contact U.S. Bank by visiting a local branch, calling the mortgage department or speaking with a customer service representative through live chat. The company's live chat support is available Monday through Friday from 8 a.m. to 8 p.m. CST. Home loan phone support is available at 1-800-365-7772 Monday through Friday from 7 a.m. to 8 p.m. CST and Saturday from 8 a.m. to 2 p.m. CST.
U.S. Bank's website is intuitive and easy to navigate, with a helpful search feature that allows users to quickly locate relevant information, useful guides on home financing and loan options and pages listing current mortgage rates and current loan terms. U.S. Bank also offers a convenient mobile app and web-based customer portal, where customers can access their loan documents, manage mortgage payoff amounts and contact loan officers. If the U.S. Bank's home loan refinance guides don't answer your questions, be sure to read through our mortgage refinance steps checklist for more information.
U.S. Bank mortgage refinance customer satisfaction
U.S. Bank is accredited by the Better Business Bureau (BBB) and receives an A rating from the organization. Although the company has a relatively low customer rating of 1.11 out of 5 stars on the BBB website, most of these reviews pertain to other areas of the business, like banking or credit cards, and not mortgage refinancing.
A more accurate indicator of the bank's mortgage refinance customer satisfaction can be found in J.D. Power's 2022 U.S. Mortgage Origination Satisfaction Study, in which the lender ranked well below average with a score of 685 out of 1,000 (the industry average being 716). This score puts U.S. Bank near the bottom of the list. On a brighter note, the company has closed over 1,000 customer complaints on its BBB profile over the past 12 months and regularly responds to customer reviews in a timely and professional manner.
U.S. Bank mortgage refinance FAQ
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How we evaluated U.S. Bank mortgage refinance
In order to evaluate U.S. Bank, we looked at factors ranging from customer satisfaction and pricing to loan refinancing options and customer support. The following are the most important criteria used in our evaluation:
- Customer satisfaction: We scrutinized customer reviews and third-party studies to assess the level of overall satisfaction with U.S. Bank's services.
- Interest rates and fees: We examined the interest rates and fees on U.S. Bank's mortgage refinance products to compare them with competitors.
- Accessibility: We assessed where U.S. Bank's mortgage refinance loans are available and whether or not customers can apply online, over the phone or at a branch.
- Types of loans: We looked at the variety of loan options available to U.S. Bank customers.
- Customer support: We researched the different ways customers can reach U.S. Bank to ask questions and get assistance with their loans.
- Eligibility requirements: We looked at the requirements a customer must meet in order to qualify for loan refinancing with U.S. Bank.
Summary of Money's U.S. Bank mortgage refinance review
Whether you're wondering if now is a good time to refinance or you’re already searching for the best mortgage refinance companies, it's important to consider what makes a lender stand out among its competition. U.S. Bank offers a wide range of loan refinancing products, some of which include options with no closing costs or lender fees. This array of refinancing products should be enough to meet the needs of most borrowers.
While below-average customer satisfaction ratings and average interest rates may leave some homeowners looking for other lenders, U.S. Bank remains a stable choice with reasonable eligibility criteria and a reliable loan process. Due to discounts of up to $1,000 on loan closing costs for qualifying customers, the company’s an attractive option for those who already have a relationship with U.S. Bank.