USAA Mortgage Rates vs. US Bank Mortgage Rates | Comparison Review
Qualifying for the best possible rates on your upcoming mortgage means you could be saving thousands of dollars over the course of your loan term.
Banks are constantly competing for your business, with two of the most well-known entities being USAA and US Bank. You’ll have to decide if either of these financial institutions is worthy of your business when you compare the USAA mortgage rates and the US Bank mortgage rates.
Understanding the subtle differences in the rates can be a step in the right direction when it comes to finding out which product is right for you.
We’ll take a closer look at the rates for a conventional US Bank and USAA home loan, as well as the US Bank and USAA VA loan rates. If you’re wondering whether the US Bank mortgage rates or the US Bank interest rates are lower than USAA, this is the perfect place to find out.
Let’s keep going to find out where the current USAA mortgage rates and the US Bank mortgage rates are in comparison to one another.
USAA Mortgage Rates
To begin, we’ll take a look first at the USAA mortgage rates available on their conventional loan products.
When you’re taking a closer look at USAA home loans, you’ll notice that they don’t advertise the rates for an adjustable-rate mortgage option. A USAA mortgage is far more likely to be one of their conventional fixed-rate choices or a loan through the VA program (which we will discuss in greater detail in another section).
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A conventional mortgage with a standard down payment amount (USAA mortgage rates require a down payment of at least five percent but eliminate private mortgage insurance at twenty percent down) comes with four different loan terms: thirty, twenty, fifteen, and ten years with fixed USAA mortgage rates.
The USAA home loan rates demonstrated in this section, accurate as of October, 28, 2016, are based on a credit score of 740.
On the most common option, a thirty-year loan term, you can find an interest rate of just 3.75 percent.
They’re also kind enough to contribute points toward your USAA mortgage rates in their rates table, showing you how low you can get the USAA home loan rates to go. At just 0.5 points, you can decrease the USAA mortgage rates for a thirty-year conventional loan to 3.5 percent.
At twenty years, you look at a small interest rate of just 3.125 to 3.375 percent (depending on the points). By a fifteen-year USAA home loans term, your rates could be anywhere from 2.625 to 2.875 percent.
The lowest USAA mortgage rates come on their shortest loan term, not uncommon among lenders. A ten-year loan term would require USAA mortgage rates between 2.5 and 2.75 percent.
USAA Home Loan Term
USAA Mortgage Rates
3.5% to 3.75%
3.125% to 3.375%
2.625% to 2.875%
2.5% to 2.75%
US Bank Mortgage Rates
Now it’s time to take a closer look at a direct competitor with the USAA home loans program. Many consumers are trying to decide whether US Bank has more to offer them than a USAA mortgage. How do the US Bank home mortgage rates compare?
The US Bank mortgage rates do have a little bit more to offer than the USAA mortgage rates because they advertise rates for ARMs (adjustable rate mortgages) as well.
First, we’ll take a look at their conventional loan products, all offered for the same loan terms as the USAA mortgage options: thirty-, twenty-, fifteen-, and ten-year loan terms.
They typically require a minimum of five percent down with a twenty percent down payment marking the end of your required private mortgage insurance premiums. These rates are also issued based on an excellent credit score of 740 or higher according to the FICO standard.
On a thirty-year loan term, the US Bank mortgage rates come in right at the high end of the spectrum compared to USAA mortgage rates. At 3.75 percent, their thirty-year conventional fixed rate mortgage has competitive rates but could definitely be lower.
The same pattern with the US Bank mortgage rates plays out through the rest of the loan terms as well. A twenty-year loan terms comes with a 3.5 percent interest rate, and just one step down to a fifteen-year loan terms gives you 3.125 percent on US Bank mortgage rates.
A ten-year loan term, which on a USAA mortgage was significantly lower than the previous three options, comes in at exactly the same as their fifteen-year term—3.125 percent.
Opting for an adjustable rate mortgage (ARM) gives you slightly lower US Bank home mortgage rates, depending on which category you are looking at.
Their longest introductory period of ten years comes with US Bank home mortgage rates of 3.375 percent, followed by a five-year introductory period at 3.125 percent. The shortest introductory period does have the lowest US bank interest rates with a three-year period coming in at just 3 percent.
US Bank Home Loan Term (Fixed Rate)
US Bank Mortgage Rates
Quick Comparison of US Bank and USAA Mortgage
When it came to conventional loan products, the USAA mortgage rates definitely beat the US Bank mortgage rates by a substantial amount. While the thirty-year conventional mortgage rates were fairly close between the US Bank mortgage rates and the rates offered by USAA home loans, the rest were not. The US Bank mortgage rates were significantly higher on the shorter loan terms across the board.
It’s difficult to compare the two based on adjustable-rate mortgages, as USAA does not seem to offer this specific type of program.
However, most lenders will offer adjustable-rate mortgages with very attractive interest rates during the introductory period. When that period ends, and the rates are adjusted to current market rates on an annual basis, the most favorable rates can easily disappear.
We found the US Bank mortgage rates on adjustable-rate mortgages to be a little troubling. If they typically come with the lowest interest rates, really designed for homeowners who probably don’t anticipate being in their home long-term, the USAA mortgage rates for conventional fixed-rate products were better on loan terms of twenty years or less.
By opting for a fixed-rate loan and steady USAA mortgage rates, you wouldn’t have to fret over what happens if you decide not to sell the house in three to ten years or consider refinancing.
Low Down Payment Options
How do the two banks compare when it comes to interest rates on a mortgage that requires a lower down payment? This will be relatively difficult to compare because they offer two different programs, but the difference in the US Bank mortgage rates and USAA mortgage rates on this type of loan program may be a deciding factor for some potential homeowners.
USAA offers a conventional fixed-rate loan program that requires a minimum of three percent toward your down payment.
It is only available in a thirty-year term for your primary residence. The lender pays private mortgage insurance on this type of loan, but it does require less paperwork than a Federal Housing Administration Loan (FHA loan). The USAA mortgage rates on their “Conventional 97” loan come in at 4.375 percent—much higher than those offered on their other conventional loan programs that require a higher down payment.
US Bank offers low down payment choices through the Federal Housing Administration (FHA) loan program. These loans are backed by a federal agency, making it more secure for lenders to issue more favorable terms and lower rates. They typically require a 3.5 percent down payment, at minimum. US Bank mortgage rates for a thirty-year fixed rate FHA mortgage are at 3.625 percent. However, you can also select a fifteen-year fixed rate FHA mortgage for even lower US Bank mortgage rates of 3.125 percent.
When it comes to low down payment choices, the FHA loan program that is offered by US Bank definitely puts homeowners ahead as far as interest rates are concerned. There is a significant difference between a 4.375 percent rate from USAA home loans and a 3.625 percent rate from US Bank interest rates. That could be thousands of dollars saved over the course of your thirty-year loan term.
VA Loan Program
For eligible veterans and members of the armed forces, the Department of Veterans Affairs offers a VA loan program through participating lenders.
Both USAA and US Bank offer this program, which typically has a lot of added benefits. You may be able to waive your down payment altogether, and you get the added perk of having lower interest rates over the course of your loan term.
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A USAA VA loan comes with two different loan terms to choose from, a fifteen-year and a thirty-year loan term.
As with their conventional mortgages, a shorter term on their USAA VA loan also means lower USAA VA loan rates. These USAA VA loan rates are based on the purchase being a primary residence with no down payment and having the funding fee financed with an individual credit score of 740.
The USAA VA loan rates on a thirty-year product range from 3.25 to 3.5 percent, depending on the points (ranging from 0.375 points to -0.625 points). A fifteen-year USAA VA loan would come with USAA VA loan rates ranging from 2.875 percent to 3.125 percent (based on points ranging from 0.375 to -0.125).
The VA loan program through US Bank offers very similar interest rates to those on the USAA VA loan. US Bank mortgage rates on a thirty-year fixed VA mortgage are at 3.625 percent and their fifteen-year fixed VA loan rates come in at just 3.125 percent. These US Bank mortgage rates seem to be far more competitive than the loan rates offered on their conventional mortgage products.
3.25% to 3.5%
2.875% to 3.125%
Comparing Interest Rates
Bear in mind that the USAA mortgage rates and the US Bank mortgage rates can fluctuate on a daily basis. In fact, they could even change throughout the course of the day if you’re watching carefully.
Mortgage rates are subject to a lender’s discretion, often based on the influence of various economic factors (growth or slowdown, predictions about the movement, the country’s money supply) and the state of the current mortgage market.
You should also keep in mind that if your credit score is less than stellar, the interest rates that a particular lender can offer you may be significantly higher. These US Bank mortgage rates and USAA mortgage rates are based off of excellent FICO credit scores of 740 or higher. Lenders are more likely to advertise their lowest possible rates, reserved for their most creditworthy customers. Consider polishing your credit score to receive lower rates if you have some room for improvement.
When you’re comparing two lenders side by side to see who offers the lowest interest rates, be certain to compare them within the same time frame.
If at all possible, you should make an attempt to compare the home loan rates on the same day to make sure that you’re comparing apples to apples. Along with that, be sure that the terms of the loans are identical to get an even comparison.
For example, the US Bank mortgage rates on their FHA loans and the USAA mortgage rates on their Conventional 97 program easily declare US Bank mortgage rates the winner for a low down payment option.
However, you’ll have to weigh which program offers you more favorable terms over the course of the loan, as well as which one is easier to obtain. The rates might be lower, but which program is better suited for your home loan?
You’ll also have to keep in mind that the USAA mortgage rates demonstrate some of the lower rates available if you purchase points at closing. The US Bank mortgage rates do not demonstrate the same thing, but you could effectively lower your US Bank mortgage rates slightly with the purchase of points.
When it comes to the USAA mortgage rates and the US Bank mortgage rates, there are a lot of different factors that you’ll need to consider. First and foremost, you’ll have to decide which loan type and term is best for you.
For a fixed-rate conventional mortgage of any loan term, the USAA mortgage rates are likely to be the lowest. However, an adjustable-rate mortgage or low down payment option would put US Bank mortgage rates firmly in the lead. When it comes to the USAA VA loan rates and those offered by US Bank, it is roughly a tie.
Also bear in mind that customer service plays a big role in the overall satisfaction that you will have regarding your borrowing experience.
If you’re on the fence between US Bank and USAA home loans, consider having conversations with both lenders regarding your needs and desires. You may find that the customer service and knowledge of their representatives declares a clear winner for you and your family.
Purchasing a home can be both an exciting and a nerve-racking time in your life. Let us help you make it easier with this side-by-side comparison of the USAA mortgage rates and the US Bank mortgage rates.
AdvisoryHQ (AHQ) Disclaimer: Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info. Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.