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Home Equity FAQs

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General Questions

Is a home equity loan a good financing option?

Interest rates for home equity lines and loans are typically lower than other forms of credit because your home is used as collateral, meaning the risk to a bank is less than an unsecured loan. This not only results in a lower cost to you, the interest you pay may be tax deductible. Consult your tax advisor regarding tax deductibility.

What can I pay for with a home equity line of credit or a home equity loan?

Because of the low interest rates and potential tax advantages of home equity lines and loans, they’re a smart way to finance almost anything, including home improvements, education, purchasing a vehicle, buying a second property or consolidating higher-interest rate balances.

How much can I borrow?

You can borrow up to $750,000 (up to $1,000,000 for properties in CA) depending on your credit history, available equity in the property and your current monthly debt.

Is the interest tax deductible?

Interest on home equity lines and loans may be tax deductible. Consult your tax advisor regarding tax deductibility.

Is the interest rate fixed or variable?

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 allows the option to convert all or a portion of your balance to a Fixed Rate Option. The variable rate changes when the Prime Rate changes (as published in the Money Rates section of the Wall Street Journal).

Are discounts available if I make my payments automatically?

Yes. Customers who have their monthly payments deducted automatically from a U.S. Bank personal Silver, Gold or Platinum Checking Package account receive a .50% interest rate discount, which is already reflected in the rates displayed in our rate tool.

Are there closing costs?

No, there are no closing costs1 on home equity lines or loans.

Can I transfer balances from other accounts to my home equity line of credit or loan?

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 Internet Banking, telephone transfers into a U.S. Bank Checking account, or at any U.S. Bank branch.

How can I apply for a home equity line of credit or home equity loan?

You can complete the application in minutes; 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 the rescission period of three business days has expired.

Home Equity Loan Questions

What is a home equity loan?

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.

What are the terms of a home equity loan?

You can borrow up to $750,000 (up to $1,000,000 for properties in CA) 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.2

Home Equity Line of Credit Questions

What is a home equity line of credit?

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. The credit limit is based on the amount of available equity. When payments are applied to the outstanding balance of your credit line, your available credit is replenished accordingly.

What is the Fixed Rate Option?

The Fixed Rate Option allows you to convert all or any portion of your line of credit balance into installment loans with a fixed rate and fixed payments. As you make payments to your installment loan(s), the available credit in your line is replenished. You can have up to three Fixed Rate Options in place at any time. The first Fixed Rate Option is free, after that, each one costs $50 to setup.

What determines the variable interest rate of a home equity line of credit?

The 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.

Can I change the interest rate on my home equity line of credit from a variable to a fixed rate?

Yes, you can lock any or all of your outstanding balance into a Fixed Rate Option on a line of credit.

What are the terms of a home equity line of credit?

You can borrow up to $750,000 (up to $1,000,000 for properties in CA) for a period of 30 years (10-year draw period and 20-year repayment period). Interest rate options include variable (based on the Prime Rate) and fixed with the Fixed Rate Option. Your minimum monthly payment during the first 10 years is your choice of either 1% or 2% of the outstanding balance, or interest only. Once the 10-year draw period has expired, your entire outstanding line balance will be converted into a principal plus interest loan for the 20-year repayment period. Repayment options depend on LTV.

How can I apply for a home equity line of credit or loan?

Get Started:

By Phone

800-445-5833

Online
In Person

Four Ways to Get Started

By Phone

800-445-5833

Online
By Request
In Person

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  1. Equiline - the Annual Percentage Rate (APR) is variable and is based upon an index plus a margin. The APR will vary with Prime Rate (the index) as published in the Wall Street Journal. As of November 1, 2013, the variable rate for home equity lines of credit ranged from 3.99% APR to 8.99% APR. Higher rates may apply for a credit limit below $125,000 (depending upon the market), an LTV above 70% or 80% (depending upon the market), a low credit score and/or not having a U.S. Bank personal Package Checking account (a 0.50% interest rate reduction). The rate will not vary above 18% APR, or applicable state law, or below 3.25% APR. An annual fee of up to $90 may apply after the first year. Offer is subject to normal credit qualifications and program guidelines. Rates are subject to change without notice. Property insurance is required. Consult your tax advisor regarding the deductibility of interest. Other restrictions may apply. See the Consumer Pricing Information brochure for terms and conditions that apply to U.S. Bank Package Checking accounts. Home Equity Loans and Lines of Credit and deposit products are offered through U.S. Bank National Association, Member FDIC. © 2013 U.S. Bank. Equal Housing Lender Equal Housing Lender

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  2. Second Lien Home Equity Loan - 7.70% fixed Annual Percentage Rate (APR) is available for 30-year second position home equity installment loan with loan-to-value of 70% or less than 80% or less depending on market. Higher rates apply for higher LTV or other loan amount. The APR reflects a 0.50% discount for having automatic payments from a U.S. Bank personal Package Checking account. See the Consumer Pricing Information brochure for terms and conditions that apply to U.S. Bank Package Checking account. Loan payment example: on a $40,000 loan for 360 months at 7.70% interest rate, monthly payments would be $285.18. 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. APR is 7.70%. Customer pays no closing costs, except escrow related funding costs. Offer is subject to normal credit qualifications and program guidelines. Rates are subject to change without notice. Property insurance is required. Consult your tax advisor regarding the deductibility of interest. Other restrictions may apply. Home Equity loans and lines of credit and deposit products are offered through U.S. Bank National Association, Member FDIC. © 2013 U.S. Bank. Equal Housing Lender Equal Housing Lender

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  3. By providing us with any telephone number used for a mobile or other wireless device now or in the future, including a number that you later convert to a cell phone number, you are expressly consenting to receiving communications - including but not limited to prerecorded or artificial voice message calls, text messages, and calls made by an automatic telephone dialing system - from us and our affiliates and agents regardless of the purpose of the communication. Calls and messages may incur access fees from your cellular provider.

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