By: Ask Bill
Submitted: 2010-12-13 03:48:16 | Word Count: 591
When my friend Alex was planning to move into a new home, he was not able to make a decision on which bank to apply for the home loan. He had advice pouring from all of his friends who had experiences with different banks. As one of his closest friend I did a small research on the net, I found some details on US Bank home mortgage. The website had a lot of information about the bank, the packages it offers, the clauses involved and others. I found the page quite informative and clear. I also happened to read through the reviews and comments from customers who had benefited from the US Bank home mortgage. I could also find online tools that helped me in mortgage planning. But, I must admit, I was worried when I came to know that the bank charged high fees.
Some interesting facts I found on the page were that the bank assures benefits and services to the customers. Unhappy customers are said to be paid back for any of the inconvenience caused by the bank. The bank has more than 2500 branches across the nation. It offers home mortgage products like fixed rate mortgages, ARM, conforming mortgages, FHA loans and jumbo mortgage loans. I was able to collect the information on how the interest rates were calculated, the interest rate and annual percentage rate differences from its website.
[ advertisement ]
The US Bank mortgage offers a wide range of mortgage products. When Alex decided to apply for a mortgage loan, he was expected to meet the bank’s pre-qualifying norms. The process was to determine the amount of money he was eligible for borrowing. Then Alex had to produce some of his documents carrying personal information for their review. It included his social security number, his assets and income as well as information on the debts he had incurred to date. Alex was informed about the charges that might be added on the loan to meet the expenses incurred for the loan. It was said that the bank usually takes 14 to 60 days for approval, depending on how clear the documents furnished are. Alex was given options for the rates of the loan and a lock-in period. It had many options for the repayment schedule.
My close friend was planning to move into a new home with a new mortgage loan. But, the bank also had another option on the loan. He was also offered US Bank refinance option which said, he could refinance on his existing home. The new loan could offer him money to pay off the existing mortgage, and that he might get lower rates than that he’d been paying then. The bank had many packages for refinance loans too. It included streamline refinance, regular refinance, cash-out refinance, no-cost refinance and few others.
Streamline refinance was for current home mortgage loan customers of the bank to lower their monthly payments. Regular refinance had the options to reduce the term of the loan, lower interest rates. Cash-out refinance had the option of tapping the home equity of the customer. No closing cost refinance was yet another option available. Since closing costs were generally as high as 2 percent of the loan, the no closing cost refinance might be a good choice for those who had no finance handy to meet the costs. The option though may sound good, might need some research beforehand because of the fact that the costs may be added indirectly to the loan.
