US Bank is a full service financial institution, providing all sorts of financial products like savings accounts, checking accounts, credit cards, personal and commercial loans and accounts, as well as investing opportunities. The home loan section of their business is very well represented on their website. They are a national company that can offer home loans and refinancing options to people across the country. Their loan options include fixed rates, adjustable rates, jumbo mortgages, FHA loans, and VA loans. The terms offered are 10, 15, 20 and 30-year mortgages and their website provides an interest rate and an APR for each type of loan. Each has its own characteristics but they are all subject to evaluation in relation to your own financial situation.
What Goes Into the Mortgage Lending Decision
When a lender makes a decision about a mortgage application, they consider many basic factors: all based on your ability to repay the loan. To ensure your loan is truly affordable, a lender will verify your employment and income. Your monthly Debt to Income ratio – your total income, minus monthly credit payments and other debts — will also be considered. The loan process many times boils down to what you can afford. A good way to check your potential finances is to utilize a monthly payment calculator such as the ones found here with
After evaluating your income, assets, liabilities and employment you can have a better idea of what you will be able to afford.
Look Beyond the Best Case Scenario
US Bank is obviously a solid institution and has very up to date information on the macroeconomic factors that will go into your loans overall cost. The tables they provide for the cost of loans are presented assuming a client with an excellent credit rating. It also assumes that the borrower is buying a single family home to live in personally. The numbers look great because of those factors.