US Bank Mortgage Rates

How do US Bank mortgage rates compare to the best mortgage lenders like Navy Federal Credit Union and Amerisave? Do low US Bank mortgage rates come at the expense of unnecessary discount points and fees? Remember that the fees you pay when buying your home or mortgage refinancing make or break the deal you’re getting. Here’s my unbiased review of US Bank mortgage rates, services and closing costs.

US Bank Mortgage Rates

US Bank is the 5th largest bank in the United States and offers a full range of mortgage products.

Should you trust US Bank mortgage rates or are their home loans laced with unnecessary fees and markup?

Rating by Robert Regehr: 2.0 stars
starfull US Bank Mortgage Ratesstarfull US Bank Mortgage Rates

US Bank Profile

The parent company of US Bank is U.S. Bancorp, traded on the New York Stock Exchange as USB, is the fifth largest bank in the United States. With 321 billion dollars in assets, they are a full service bank with 3,086 branches, 5,086 ATM locations, a full line of brokerage, investment, insurance, and mortgage services tailored to institutions, consumers and businesses.

Founded in 1858 the bank is headquartered in Minneapolis, Minnesota. US Bancorp was recently ranked 121 on the Fortune 500 list of companies. Accounts are available in 25 States including Arizona, Arkansas, California, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oregon, South Dakota, Tennessee, Utah, Washington, Wisconsin, and Wyoming.

US Bank Contact Information

By Phone:

Cincinnati: (513) 632-4141
Denver: (303) 585-8585
Milwaukee: (414) 765-4636
Minneapolis/St. Paul: (612) 872-2657
Portland: (503) 872-2657
St. Louis (314) 425-2000
Everywhere: (800) 872-2657

Online:

www.usbank.com

By Mail:

U.S. Bank
800 Nicollet Mall
Minneapolis, MN 55402

US Bank Mortgage Rates Review

I’ve written about the problem with bank mortgage rates in the past, namely bank service release premium. The Real Estate Settlement Procedures Act doesn’t apply to banks and broker banks thanks to the Banking Lobby which means banks can charge whatever they want without disclosing what they’re doing. This doesn’t mean US bank mortgage rates are going to price themselves out of the market; they have to stay competitive to make money. The problem is subtle markup and junk fees can wind up costing you thousands of dollars for no reason if you neglect to shop around.

With that being said, here’s my take on US Bank mortgage rates.

The website is friendly and professional as you would expect from any major lender and there are extensive educational resources available. US Bank Mortgage Rates are published on the site with varying options for discount points. Overall the rates published were slightly higher than what I’ve seen available from the best community based credit unions.

While the purchase and mortgage refinance rates quoted had options that included discount points, they all quoted a 0% origination fee. The mortgage loan origination fee can reasonably cost you up to one percent of your loan amount. Rates quoted include a 90-day lock period.

The Annual Percentage Rate (APR) is quoted side-by-side US Bank Mortgage Rates; however, basing your decision on APR alone does not give you enough information on lender fees as the APR calculation is flawed.

Conforming fixed-rate, adjustable rate, jumbo, FHA, and VA loans are available. The website indicates that US Bank participates in the Home Affordable Refinance Program but the extent of participation in HARP 2.0 is not clear. I was unable to find a fee disclosure aside from the APR anywhere on the website which is the problem with banks. Because they’re exempt from the Real Estate Settlement Procedures Act, the bank isn’t required to give anything more than the Annual Percentage Rate.

Do you have an experience or an opinion of US Bank mortgage rates that you’d like to share? Please leave a comment below

Should you trust US Bank mortgage rates for your next home loan? I would recommend shopping around from a variety of the best mortgage companies comparing both refinance rates and fees. Doing your homework is the best way to avoid common mortgage mistakes and save yourself some cash in the process.

You can learn more about getting the best deal for your next home loan without paying unnecessary discount points or lender junk fees by checking out my free Underground Mortgage Videos.

Amerisave Mortgage Review

amerisave review Amerisave Mortgage ReviewIf you are considering taking out a mortgage to purchase your new home or refinance an existing home loan with Amerisave Mortgage, it’s well worth your time to check the lender out before signing on the dotted line. One way of checking out a mortgage lender before taking out a loan is to look at customer complaints. Here is RefiAdvisor’s review of Amerisave Mortgage to help you make an informed decision before taking out your next home loan.

Amerisave Mortgage

Amerisave is a nationwide direct mortgage lender.

Rating by Robert Regehr: 4.0 stars
starfull Amerisave Mortgage Review***

Amerisave Direct Lender. Over Six Billion Funded.

Claiming to make shopping for mortgages easy and straight forward, should you choose Amerisave for your mortgage refi?

Visit Amerisave’s website and you’re greeted with this claim of six billion dollars in loans funded. They claim to have closed over 10,000 loans in all fifty states and offer an “on time closing guarantee” that will pay you $1,000 should they fail to fund your loan in time. They also offer a “$500 low rate guarantee.” Of course these “guarantees” come with lots of fine print so you should carefully review the conditions before basing your decision on Amerisave’s “guarantees.”

Amerisave Mortgage Company Contact Information

Phone Numbers:

866-970-7283
404-736-1798
404-260-7524
404-424-0632

Address:
Amerisave

Mortgage One Capital City Plaza 3350 Peachtree Rd Suite 1000 Atlanta GA, 30326

Amerisave Mortgage operates their business as a Mortgage Broker Bank, similar to Ditech.com and eLoan. This means they close their home loans in their company name and fund the loans themselves, making Amerisave exempt from the Real Estate Settlement Procedures Act (RESPA). Because Amerisave is exempt from RESPA disclosure legislation you’ll never know how much money they’re making off you by marking up your mortgage rate. Amerisave mortgage actively purchases mortgage leads from the likes of LendingTree.com and LowerMyBills.com, two internet lead generation sites with less than sparkling reputations. If you’re a regular reader of this blog you know that Lending Tree’s computerized loan origination fee is passed on to the consumer, as much as $1200 at closing.

Amerisave Mortgage Complaints

According to the Better Business Bureau, Amerisave mortgage had 145 complaints filed during the past 36 months and only 57 of them were resolved in twelve months. Searching Google for Amerisave mortgage complaints reveals 684 listings, which could be worth your time in reading.

Get Instant Access

You can learn more about paying less for your mortgage refinance by avoiding unnecessary fees and markup by checking out my free Underground Mortgage Refinancing Videos.

httpv://www.youtube.com/watch?v=be9md0A0_2c
  • Free Underground Mortgage Videos

Here’s a quick sample to get you started finding today’s best mortgage refinance rates without overpaying.

Forbes Best Mortgage Lenders

how much are closing costs Forbes Best Mortgage LendersForbes recently updated their list of the best mortgage lenders of the year. Surprisingly, they’re nearly all banks. As you might know from watching my free Underground Mortgage Videos, banks are exempt from the Real Estate Settlement Procedures Act and do not always have your best interest at heart when refinancing your mortgage. Banks routinely add Service Release Premium to their lowest rates and are not required to disclose this markup.

If you get a mortgage from the bank the only ones who will know how much your interest rate has been marked up is the bank. Many homeowners stick with their banks as a matter of convenience; however, most banks overcharge for loan origination and other fees.

Best Mortgage Lenders Ranked

Here’s the Forbes list of top five mortgage lenders in the United States.

  1. Bank of America
  2. Amerisave Mortgage
  3. Wachovia Bank
  4. Discover Mortgage
  5. Loan Depot

Take this list from Forbes with a grain of salt. The best mortgage mortgage lenders for you are one that delivers your mortgage when you need it without unnecessarily marking up your mortgage interest rate and provides you with favorable terms on the loan. If you’re not already comparison shopping for lenders and brokers that agree to charge you a reasonable origination fee, you’re probably paying too much.

How much is reasonable for the mortgage origination fee? Most loan officers will tell you one percent is standard; however, I’ve reviewed community credit unions that charge as little as $400 for their loan origination fee. The less you pay closing on your new home loan the faster you’ll recoup your out-of-pocket expenses and the more you’ll benefit from today’s lowest refinance rates.

Just because a magazine like Forbes ranks the best mortgage lenders doesn’t automatically mean you’re going to get deal from one of these lenders. Lender fees vary widely from one bank to another and some of the best deals I’ve found have been from those small community credit unions and even regional banks.

How To Shop For Today’s Best Mortgage Lenders

The Good Faith Estimate is an excellent tool for shopping for the lowest rates and fees from the best mortgage lenders, if you go about it correctly. The first step is to make sure that you’re protecting your credit score and requesting quotes from identical mortgage programs.

How do you protect your credit score? Every time one of today’s best lenders runs your credit score you get a hard inquiry on your credit report. These inquiries add up and can lower your score. Some homeowners think they’re protecting their credit scores by refusing to give out their Social Security number when requesting a quote. If you do this you’re relying on the loan officer’s guessing what interest rate you’ll qualify, or simply quoting the advertised rates.

You need accurate quotes when shopping for the best mortgage lenders so it’s important to give the loan officer your Social Security number. The trick is to limit all of your quotes to a two-week period and you’ll only get dinged for one lender inquiry on your credit.

How To Use Your Good Faith Estimate To Compare Fees

The new Good Faith Estimate is an excellent tool for comparing fees from today’s best mortgage lenders. Page two outlines all of the fees you’ll want to comparison shop starting with that loan origination fee found in section A of page two.

Should you pay discount points? Item 2 of section A on page two shows any discount points charged for the interest rate being quoted. You’ll find that all of the best mortgage lenders quote rates that include discount points because the fee makes their offer seem more attractive.

The problem is that only lenders benefit from discount points. Paying this fee lengthens the amount of time it takes to break even before you benefit from lowering your payment. Make sure the quotes you’re requesting do not have points. If you’d like to see how paying discount points affects your payment amount there is a table on page three of your Good Faith Estimate.

What About Yield Spread Premium?

Every now and then I get a comment from a reader when I write about Yield Spread Premium saying that it’s illegal now and that I should do my homework. Yield Spread Premium is NOT illegal, it’s on page two of your Good Faith Estimate. The law changed to prevent originators from double-dipping their commission by charging an origination fee and taking Yield Spread Premium from the lender. Your broker can only get paid by from one or the other; Yield Spread Premium is not illegal.

What is Yield Spread? Simply put it’s a credit paid by the lender for accepting higher than market mortgage rates. The credit is found in box two of section A, page two of your Good Faith Estimate. Look for “You receive a credit of $ for this interest rate of X%. This credit reduces your settlement charges.”

This is how those “no fee” mortgage offers work. You’re taking a higher interest rate to have the lender credit your settlement fees. Is it worth doing? If you can’t afford to pay the settlement fees from today’s best lenders out-of-pocket, this might seem like your only option.

Keep in mind that higher interest rates result in higher payments and most of the best mortgage lenders allow you to roll your settlement charges into the loan balance without taking a higher interest rate. The less you pay closing on your new home loan, the more benefit you’ll get from the interest rates being offered by today’s best mortgage lenders.

Click for Instant Online Access

You can learn more about getting a better deal from today’s best mortgage lenders than your neighbors by checking out my free Underground Mortgage Videos.

httpv://www.youtube.com/watch?v=be9md0A0_2c
  • Free Underground Mortgage Videos

Here’s a sample to get you quickly on the path to paying less for mortgage bliss…

Bank Refi Pitfalls to Avoid

If you’re considering a bank refi for your next mortgage there are several things you need to know about bank refi loans that could cost you thousands of dollars in hidden fees and markup. This hidden markup of your bank refi drives up your payments by $1200 a year or more! Here are several of my best mortgage refinancing tips to help avoid paying too much for your next home loan, even when considering a bank refi.

Bank Refi Secrets

The number one problem with bank refi lons that you might not know about is that your lender is exempt from laws that protect homeowners in the United States from predatory lending practices. That’s right; your bank is exempt from the Real Estate Settlement Procedures Act (RESPA) which requires mortgage brokers and lenders to disclose their profit margin and markup of your home loan. In the 1990s the Banking Lobby in the United States spent millions of dollars “lobbying” lawmakers to have RESPA changed to exclude banks and credit unions. They succeeded and as a result your bank is not required to disclose any of their markup or profit margin from your bank refi loan. You’ll get little more than an Annual Percentage Rate and Good Faith Estimate to base your decision for taking the bank refi loan.

The Problem with Annual Percentage Rate

The problem with the bank refi Annual Percentage Rate (APR) is that it is based on a Good Faith Estimate. Mortgage lenders routinely low-ball the figures on Good Faith Estimates to make their loan offers more attractive. After all, it’s just an estimate given in “good faith” right? As an educated consumer, you know what that’s worth in today’s marketplace. Another problem with Annual Percentage Rate is that while Truth-in-Lending laws require lenders to provide you with their APR there is no standard for how that APR is calculated or accountability for what it contains. The Annual Percentage Rate from one lender to the next may not include all of the costs or fees associated with locking and closing the bank refi loan. This makes it impossible to make apples-to-apples comparisons of bank refi loans when shopping for the lowest mortgage rates and fees.

Because the Annual Percentage Rate is based on a Good Faith Estimate for which here is no standard or accountability among lenders it is all but worthless for basing your decision when it comes to taking out a bank refi loan.

This is why I recommend avoiding bank refi loans completely…why would you ever considering doing business with any lender that doesn’t have to play by the rules? You see how angry people get about all of the shady dealings and kickbacks when it comes to the health care industry, if people only knew about all of the dirty dealings the Banking Lobby is responsible for they would be outraged.

What your lender doesn’t want you to know about bank refi loans is that the majority of their profits comes from selling home loans with higher than necessary mortgage rates to investors on the secondary market. Profit made this way is known to the industry as Service Release Premium. The bank knows what wholesale mortgage rates are and what you could get if only you knew better; however, they mark up your bank refi rates to collect this premium profit known as Service Release Premium.

Mortgage Broker Banks

Bank refi loans are a sure way to overpay for your home loan. When the Real Estate Settlement Procedures Act changed a number of brokers and other mortgage companies restructured their business to take advantage of the loophole. These individuals operate what are known as mortgage broker banks, meaning that they fund home loans with their own cash. By doing this, they are not required to disclose any more and overcharge homeowners like your neighbors in the same manner. How can you spot a broker bank? Ask the person arranging your home loan if they lock and close in the name of the wholesale lender or in the name of their own company. If they close in their company’s name, you know they’re operating as a broker bank, and the only reason for doing this is to take advantage of their customers. This is the direct mortgage lender lie, they want you to think that by cutting out the middleman you’re saving money, but it’s really only done to overcharge you.

You can learn more about bank refi home loans and avoiding junk fees that cost you thousands of dollars per year by checking out my free Underground Mortgage Refinancing Videos.

httpv://www.youtube.com/watch?v=be9md0A0_2c

Here’s a quick sample to get you started that exposes another kind of hidden markup used by mortgage brokers to double, even triple their commissions at your expense.

Lowest Rates Mortgage Lenders

If you are in the process of taking out a new mortgage loan to refinance you existing mortgage or purchase a new home, there are several things you’ll want to know about mortgage rate quotes to avoid paying too much. You may have arrived here searching for the lowest rates mortgage lenders; however, getting the lowest mortgage rates can be tricky due to hidden markup and junk fees. Here are several of my best mortgage tips to help you find the lowest rates mortgage lenders for your next home loan without paying junk fees.

Lowest Rates Mortgage Lenders

The first thing you need to know about mortgage lenders is that not all lenders are the same. Choosing one type of lender over another can result in paying higher mortgage rates. There are three types of mortgage lenders that I’ll discuss today, as well as the pros and cons of each. The first type is your bank or credit union. The main advantage of taking out a mortgage with your bank is convenience…what could be easier than transferring funds from your checking account every month to pay your mortgage bill? Bank mortgage rates aren’t the greatest, especially when you compare them to wholesale mortgage rates. This is because the bank makes the majority of their profit from your home loan by selling your mortgage to investors on the secondary market. Home loans with higher than market mortgage rates make them a premium profit known as Service Release Premium. Another problem with bank originated mortgage loans is that thanks to a little known loophole in the Real Estate Settlement Procedures Act (RESPA) your bank is not required to disclose their markup or profit margin on your home loan.

The second type of lender we’re going to discuss today is known as a broker bank. In the 90s the Banking Lobby in the United States successfully lobbied Congress to have the RESPA laws changed to exclude banks. This means banks have an unfair advantage over mortgage brokers that are required to disclose any markup of your mortgage rate for a profit. When the law changed a number of mortgage companies and brokers changed their business models to operate like a bank. This means they formed companies that fund home loans with their own cash rather than reselling loans from wholesale lenders. This change in their business model allows these mortgage broker banks to exploit the same loopholes enjoyed by banks. If you take out a mortgage loan from your bank or a broker bank you’ll never get the lowest mortgage rates when refinancing or purchasing your home. How do you recognize a broker bank? Simply ask what name they close your mortgage under. If they close in the name of their company rather than a wholesale lender you know you’re dealing with a mortgage broker bank.

Wholesale Mortgage Loans

Most people, including many mortgage brokers, will tell you that you can’t get wholesale mortgage rates. While many mortgage brokers markup mortgage rates offered by wholesale lenders for a commission known as Yield Spread Premium, it is possible to find a mortgage broker willing to work for a flat origination fee of one percent without marking up your mortgage rate. By paying the origination fee up front, (one percent is perfectly reasonable for the mortgage broker fee) you avoid unnecessary inflation of your mortgage payment. So how do you find a wholesale mortgage loan? You might think by contacting a wholesale mortgage lender directly you’ll be able to cut out the middleman and refinance or purchase with a wholesale mortgage rate. Unfortunately, this isn’t the case. Wholesale mortgage lenders have retail lending divisions so if you want a wholesale mortgage rate you have to find the right mortgage broker to arrange your home loan.

How to Find the Right Mortgage Broker

Getting a wholesale mortgage rate isn’t as hard as it sounds. You don’t have to be a financial guru to pull it off; you’ll just need to find the right mortgage broker for the job. The problem is that many shady mortgage brokers rely on Yield Spread Premium to boost their bottom line at your expense. You’re already paying a perfectly reasonable origination fee for this person’s work arranging your home loan so any commission paid by the mortgage lender for marking up your mortgage rate only drives up your monthly payment unnecessarily.

How do you find the right mortgage broker when refinancing or purchasing your home? Start by telling prospective mortgage brokers that you understand how Yield Spread Premium works and that you will not accept any home loan that includes this markup. Offer to pay a reasonable origination fee for the mortgage broker’s services. One percent is a perfectly reasonable origination fee and there are many honest mortgage brokers willing to arrange your home loan without taking Yield Spread Premium.

2010 RESPA Changes

In a lackluster attempt to protect homeowners from mortgage broker abuse of Yield Spread Premium, the Department of Housing and Urban Development (HUD) enacted several changes effective January 1st, 2010. Mortgage brokers now have to include Yield Spread Premium as part of the origination fee in your loan documents. This doesn’t really help homeowners because mortgage brokers will go on telling you that since the lender is paying that portion of the origination fee and it’s not coming out of your pocket that you shouldn’t worry about it. No big change there. HUD has also revamped the Good Faith Estimate and you will now receive three pages of low-balled fees instead of the two page GFE you’re used to. These changes are pretty much cosmetic and do very little to protect homeowners from abusive mortgage practices. Of course, banks and broker banks are still exempt from RESPA legislation and can charge their borrowers pretty much whatever they like.

You can learn more about getting a wholesale mortgage rate for your next home loan by checking out my Underground Mortgage Refinancing Videos.

httpv://www.youtube.com/watch?v=be9md0A0_2c

Here’s a sample of what you’ll get when you sign up…this video shows you more about how Yield Spread Premium drives up your mortgage payment unnecessarily and what you can do to avoid it.