General questions
Interest rates for home equity lines and loans are typically lower than for other forms of credit because your home is used as collateral – meaning the risk to a bank is less than with an unsecured loan. A lower rate means a lower cost to you — and the interest you pay may be tax deductible1as well.
Because of the competitive interest rates and potential tax advantages of home equity lines and loans, they're convenient ways to finance almost anything, including home improvements/repairs, education, purchasing a vehicle, buying a second property or consolidating higher interest rate balances.
You can borrow at minimum $25,000 or up to $750,000 (up to $1 million for properties in California), depending on your credit history, available equity in the property and your current monthly debt.
Interest on home equity lines and loans may be tax deductible.1Consult your tax advisor regarding tax deductibility.
Our home equity installment loan has a fixed rate. Our home equity line of credit has a variable rate which changes when the prime rate changes (as published in the money rates section of the Wall Street Journal). In addition, the home equity line of credit includes the option to convert all or a portion of your balance to the fixed rate option. (For more on this, see "What is the fixed rate option?")
Yes.Customers who have their monthly payments deducted automatically from a U.S. Bank personal checking or savings account receive a 0.50% interest rate discount for home equity loans. This discount can be applied in our home equity rate and payment calculator.
There are no closing costs on home equity loans or lines of credit.
Yes.When opening a home equity account, your personal banker can transfer any higher-rate balances to your new home equity line of credit or loan. After opening the account, you can transfer balances to a home equity line of credit via convenience checks, U.S. Bank Online and Mobile Banking, telephone transfers into a U.S. Bank checking account, or at any U.S. Bank branch.
The length of time to process the application varies depending on your situation. Once you’ve signed the documents at closing, the funds will be available after a waiting period of three business days on accounts secured by a primary residence.
Both the home equity installment loan and home equity line of credit offer homeowners looking for cash flexible options depending on if you want the money in a lump sum paid back over a period of time or a line of credit to draw from as you need it for a pre-determined amount.
Homeowners who are in need of cash have convenient loan options available today. Once you determine how much you need we can help you compare which loan is right for you.
Depending on your goals either a home equity loan or mortgage refinance may be the right choice for you.
Home equity line of credit questions
A home equity line of credit is a revolving line of credit secured by your home and is the most flexible type of home financing available. As payments during the draw period are applied to the outstanding principal balance on the credit line, your available credit increases.
With the fixed rate option, you can lock in a fixed rate on all or any portion of your variable balance at any time.
- Any portion of the balance that is not converted into a fixed rate option will continue to have a variable rate and minimum payment in addition to the fixed rate payment.
- You can have up to 3 fixed rate options in place at any time.
The variable interest rate is based on the Wall Street Journal Prime Rate as published in the Money Rates section. You can lock in all or any part of your outstanding balance into a fixed interest rate at any time with our fixed rate option. You can have up to 3 fixed rate options in place at any time.
Yes, during your draw period you can lock any or all of your outstanding balance into a fixed rate option on a line of credit. (For more on this, see "What is the fixed rate option?")
A Home Equity Line of Credit has two different periods, a draw period and repayment period. The draw period is 10 years, where you have ongoing access to available funds and can use the funds how you'd like. During the draw period, you have the option to select a minimum monthly payment of either 1% or 2% of the outstanding balance, or interest only for those who qualify. Once the draw period ends, the account enters the repayment period.
During the repayment period, you can no longer advance on the home equity line of credit, and must make principal and interest payments. The new minimum payment will ensure the balance is paid in full by the maturity date. The interest rate on the balance continues to be variable.
A home equity line of credit (HELOC) is a revolving form of credit secured by your property. You can borrow as little or as much as you need, up to your approved credit line and you pay interest only on the amount that you borrow.
With a home equity installment loan funds are received as a lump sum versus a home equity line of credit that let’s you borrow money as you need it.
A Home Equity Line of Credit (HELOC) is a great way to access the cash you need. When you are ready you can apply online, by phone or in person.
Home equity line of credit end of draw
Home equity loan questions
A home equity loan is one-time installment loan secured by your home. Both the interest rate and monthly payments are fixed, ensuring you of a predictable repayment schedule for the life of the loan.
You can borrow up to $750,000 (up to $1 million for properties in California) depending on the amount of equity in your home. Terms are flexible up to 360 months (30 years). The interest rate is fixed for the term of your loan, and repayments are made in monthly installments of principal and interest.
Also known as a second mortgage, home equity loans have a fixed rate and monthly payment ensuring a predictable repayment schedule.
If you are looking to consolidate debt or pay for large household expenses, the home equity loan may offer you a convenient solution. You can apply by phone, in person or online.
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Disclosures
Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S.Bank National Association. Deposit products are offered by U.S.Bank National Association. Member FDIC.
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Footnote
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U.S. Bank and its representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.
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The Consumer Pricing Information disclosure lists fees, terms and conditions that apply to U.S. Bank personal checking and savings accounts and can be obtained by visiting a branch or calling 800-872-2657.
Home Equity Line of Credit: Repayment options may vary based on credit qualifications. Choosing an interest-only repayment may cause your monthly payment to increase, possibly substantially, once your credit line transitions into the repayment period. Interest-only repayment may be unavailable. Loans are subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. A U.S. Bank personal checking account is required to receive the lowest rate but is not required for loan approval. Customers in certain states are eligible to receive the preferred rate without having a U.S. Bank personal checking account. Interest rate and program terms are subject to change without notice. Credit line may be reduced, or additional extensions of credit limited if certain circ*mstances occur.
An early closure fee of 1% of the original line amount, maximum $500, will apply if the line is paid off and closed within the first 30 months. Property insurance is required. Other restrictions may apply. Customer pays no closing costs. Initial escrow related funding costs may apply. An annual fee of up to $75 may apply after the first year and is waived or discounted with an existing U.S. Bank Platinum Checking Package or with enrollment in our Smart Rewards Program. Annual fees are assessed based on the tier in our Smart Rewards Program on your HELOC anniversary date. Please refer to your Smart Rewards terms and conditions for more information on tier assignment.
Home Equity Line of Credit – Fixed Rate Option: A maximum of three active Fixed Rate Options are permitted on a Home Equity Line of Credit. Property insurance is required. Other restrictions may apply.
Home Equity Loan:As of March 15, 2024, the fixed Annual Percentage Rate (APR) of 7.65% is available for 10-year second position home equity installment loans $50,000 to $99,999 with loan-to-value (LTV) of 60% or less.Rates may vary based on LTV,credit scoresor other loan amount.In order toreceive the lowest rate advertised, a set-up of automatic payments from a U.S.Bank personal checkingor savingsaccount is required but neither are required for loan approval. Customers in certain states are eligible to receive the preferred rate without having automatic payments from a U.S.Bank personal checking or savings account. Loan payment example: on a $50,000 loan for 120 months at 7.65% interest rate, monthly payments would be $597.43. Payment example does not include amounts for taxes and insurance premiums. The monthly payment obligation will be greater if taxes and insurance are included and an initial customer deposit may be required if an escrow account for these items is established. Home equity loans not available for properties held in a trust in the states of Hawaii, Louisiana, NewYork, Oklahoma and RhodeIsland. Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Property insurance is required. Other restrictions may apply.
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