Review
Updated
Fact Checked
Nathan Alderman
Mr. Cooper Mortgage (formerly known as Nationstar Mortgage) is one of the largest mortgage loan servicers in the country and the largest non-bank service provider. With 4.1 million customers, Mr. Cooper Mortgage shows its clients updated interest rates on a daily basis. It also offers a variety of perks, such as a 45-day mortgage rate lock. Read our full review to find out if it's right for you.
Best for: Unique perks
Mr. Cooper Mortgage
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Mr. Cooper offers full digital access to help borrowers manage their mortgages. Mr. Cooper also offers other perks, such as reducing your interest rate by 1% for one year, connecting borrowers with local real estate agents, and guaranteeing the closing date.
Min. Credit Score 580 FHA 600 VA 620 Conventional
- 580 - 620
Min. Down Payment
- 3%
Key Features
- 1% Mortgage Markdown discount
- Mobile app
- RateSwap (save up to $1,500 on a refinance)
- Mr. Cooper perks (agent assurance, close on time guarantee, etc)
Loan Types
- Conventional
- FHA
- VA
- Jumbo
Fixed Rate Terms
- 30y, 15y
Adjustable Rate Terms
- 3/1, 5/1, 10/1
Top Mortgage Lenders
It's important to compare mortgage lenders so you understand all your options. Here are a few of our favorite lenders, listed side by side so you can see how they each stack up against their competition:
| Lender | Min. Down Payment | Credit Score | Next Steps |
|---|---|---|---|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
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Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
|
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Full Mr. Cooper Mortgage review
Mr. Cooper Mortgage is a good fit for: Borrowers looking to get a mortgage online or through an app and who want unique borrower perks.
Pros
- Mobile app
- 1% Mortgage Markdown and RateSwap
- 45-day rate lock
- Mr. Cooper perks, such as Close on Time Guarantee and Agent Assurance
Cons
- No physical branches
- Need to talk to loan representative to get personalized rates
- Below average customer service ratings
- Not all loan types offered
Top perks
Award-winning mobile app
Mr. Cooper Mortgage's mobile app keeps borrowers updated on each stage of the loan process and helps users manage their mortgage loan.
1% Mortgage Markdown
Mr. Cooper Mortgage offers a discount for borrowers called the 1% Mortgage Markdown. It is a lender-paid temporary buydown program that lowers the monthly payment by a full percentage point for the first year. Savings start immediately and borrowers are not responsible for paying the reduced portion of principal and interest.
RateSwap
Mr. Cooper Mortgage's RateSwap lets homeowners buy a home now and Mr. Cooper Mortgage will waive the origination fees (up to $1,500) on a refinance within 39 months of the purchase loan's lock date.
Mr. Cooper Mortgage's other numerous perks
Mr. Cooper Mortgage's perks offer an all-in-one toolkit for home buyers. Mr. Cooper Mortgage connects home buyers with local real estate agents from trusted firms like Century 21 and Coldwell Banker. Another perk is the Close On Time Guarantee, where it guarantees a loan will close on time, or the first month's mortgage payment (principal and interest) will be paid by the lender. Mr. Cooper Mortgage also offers real-time interest rates, personalized mortgage options, and a 45-day lock, where borrowers can get peace of mind by locking in a rate and not worrying about it going up.
What could be improved
No physical branches
Mr. Cooper Mortgage is an online-only lender with no physical branches. If borrowers want to speak with a representative face to face, then Mr. Cooper Mortgage may not be for them. In addition, borrowers must call or contact Mr. Cooper Mortgage online to get personalized mortgage rates.
Below average customer service ratings
Mr. Cooper Mortgage states that it will set you up with a dedicated mortgage professional to help guide you through the process. You'd think this would mean a higher customer service score. However, according to the 2023 J.D. Power U.S. Mortgage Servicer Satisfaction Study, Mr. Cooper's customer service was ranked toward the bottom at No. 23 out of 31, receiving a score of 577 out of 1,000. The industry average was 607.
In addition, according to the 2023 J.D. Power U.S. Mortgage Origination Satisfaction Study, Mr. Cooper Mortgage was ranked third from the bottom at No. 20 of 27, receiving a score of 707 out of 1,000. The industry average was 730.
Though potentially useful, Mr. Cooper's mobile app has suffered in recent ratings. The app scores a 4.8 on the App Store and a 3.7 on Google Play. Frequent complaints concern autopay and trouble logging in.
Legal actions and formal complaints
In 2020, the Consumer Financial Protection Bureau filed a complaint against Nationstar, formerly known as Mr. Cooper Mortgage, alleging unlawful foreclosures on borrowers with loan modifications between 2012 and 2016. Additionally, in 2021, Mr. Cooper Mortgage's reverse mortgage servicing division, Champion, reached a settlement with the New York Attorney General over allegations of inadequate borrower information disclosure, potentially leading to foreclosure risks.
Also in 2021, the CFPB initiated an investigation into an incident involving Mr. Cooper Mortgage's duplicate withdrawals from thousands of customers' bank accounts, attributed to an electronic payments vendor issue. Mr. Cooper Mortgage has assured affected customers that they will not be held responsible for any related fees, as the lender cooperated with the impacted banks to address the error and mitigate its impact.
Not all loan types offered
While Mr. Cooper Mortgage offers a wide range of mortgage products, it does not offer USDA loans.
How to qualify
The qualification process depends on the type of mortgage you want to apply for. You can call Mr. Cooper Mortgage at its toll-free number or fill out an online form to be contacted. Minimum down payment requirements for conventional loans are 3% and 3.5% for FHA loans. Mr. Cooper Mortgage doesn't publish minimum credit score requirements for its loans.
How are Mr. Cooper Mortgage's refinance rates?
Mr. Cooper Mortgage's refinance rates are about the same as the national average. Mortgage interest rates could be impacted by several factors, including credit score, loan amount, property type, and down payment size. For context, take a look at current mortgage refinance rates among other lenders.
Mr. Cooper Mortgage also offers a RateSwap perk that gives up to $1,500 in credit for a future refinance. Mr. Cooper Mortgage will waive the origination up to $1,500 on a refinance within 39 months of the purchase loan's lock date.
How are Mr. Cooper Mortgage's rates compared to the national average?
Mr. Cooper Mortgage's mortgage rates are about the same as the national average. Mr. Cooper Mortgage offers a 45-day rate lock to help borrowers lock in a rate without worrying about it changing. Mr. Cooper Mortgage shows rates for a 15-year and 30-year mortgage.
Mr. Cooper Mortgage's 1% Mortgage Markdown discounts monthly payments by reducing the mortgage loan's interest rate by a full percentage point for the first year, potentially saving thousands of dollars.
Mr. Cooper Mortgage is right for you if:
You want to apply for a mortgage online, rely on an easy-to-use app, and take advantage of multiple perks, including the 1% Mortgage Markdown and up to $1,500 in credit for a future refinance.
FAQs
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Mr. Cooper's mortgage rates are about the same as the national average. Keep in mind your interest rate will depend on a variety of factors such as credit score, home price and location, down payment amount, and more. Mr. Cooper offers the 1% Mortgage Markdown, where it will take 1% off the mortgage rate for a full year.
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Mr. Cooper is a good choice for those looking to get a loan online and those who want to take advantage of its numerous perks. These include the 1% Mortgage Markdown, Close On Time Guarantee, Agent Assurance, and more.
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Mr. Cooper's refinance rates are in line with the national average and through its RateSwap perk, the lender gives up to $1,500 in credit for eligible borrowers refinancing their home.
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Each type of loan that Mr. Cooper offers has different qualifications. A mortgage specialist will help you decide which one is best for you.
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Mr. Cooper Mortgage offers fixed-rate mortgages (15 year or 30 year), adjustable-rate mortgages (3/1, 5/1, or 10/1 ARM), conventional, FHA, VA, jumbo loans, and HELOCs.
Our Mortgages Experts
David S. Chang, ChFC®, CLU® is an award-winning entrepreneur, keynote speaker, author, and consultant. He has over two decades of experience in the wealth management space and has been featured in dozens of news, radio, and podcast programs nationwide. He currently works as Head of IoT for the West Region of a Fortune 200 company. He is a graduate of the United States Military Academy at West Point and currently a Lieutenant Colonel in the California Army National Guard. He is an East-West Graduate Degree Fellow and has an MBA from the UCLA Anderson School of Management.
Cole Tretheway is a full-time personal finance writer whose articles have been featured on The Ascent and The Motley Fool. He has a degree in English with a Certificate in Professional and Technical Communication from California Polytechnic University, SLO.
Fact Checked
Nathan Alderman
Nathan Alderman has worked with The Motley Fool since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As The Ascent's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.
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