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- Mr. Cooper Mortgage Review
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Mr. Cooper Mortgage is a nationwide mortgage lender with a friendly online approach. It offers a unique opportunity to use credit card rewards to pay off your mortgage faster. The Mr. Cooper Mortgage website has a fun vibe and helpful details for first-timers. It's brief, to the point, and easy to navigate. But it might be too simplistic for more knowledgeable mortgage loan information seekers.
If you're looking for a Nationstar Mortgage review, you're in the right place. Nationstar rebranded as Mr. Cooper in 2017.
Read our complete Mr. Cooper Mortgage review to decide if this is the best mortgage lender for you.
Best for: Unique perks
Mr. Cooper Mortgage
Rating image, 4.0 out of 5 stars.
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.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.
Bottom Line
Mr. Cooper offers some unique mortgage options worth checking out including a credit card where the rewards you earn help pay down your loan principal.
Full Mr. Cooper Mortgage review
Mr. Cooper Mortgage is a good fit for: Borrowers who are interested in saving money on their mortgage using credit card rewards.
Pros
- Credit card rewards pay down principal
- Cutting-edge apps for applicants and mortgage holders
- Rate lock
- Flat fee for mortgage origination
Cons
- Lack of transparency
- Fewer loan program options than some other lenders
- Mortgage application fee
Top perks
Rate discount for current customers: If you're a current Mr. Cooper customer, you may be eligible for preferred pricing. That could translate to a fee discount or a lower interest rate. Current customers can explore mortgage options freely. A loan officer can make a soft credit inquiry to provide an idea of available interest rates and eligible products without impact to your credit score.
Mortgage rewards credit card: Mr. Cooper offers an unusual benefit in the Mr. Cooper Home Rewards Mastercard®. The rewards you earn are automatically applied to the unpaid principal balance on your mortgage every time your rewards balance reaches a predetermined threshold. Just one extra mortgage payment each year could knock eight years off a 30-year mortgage (depending on your interest rate), so chipping away at your principal balance through your everyday purchases could be a savvy money move.
Mr. Cooper Real Estate Rewards: Buyers and sellers can connect with a partner real estate agent to save money on the transaction.
Close on time guarantee: Mr. Cooper Mortgage promises to make your first principal and interest payment if your loan does not close on time.
45-day rate lock for purchase loans: A rate lock means you won't have to worry about paying more if your application takes a few weeks to process and the mortgage rate goes up in the meantime.
Highly rated, user-friendly apps: Mr. Cooper Mortgage takes a digital-first approach and puts the home, not the loan, at the center of the experience. You can use Mr. Cooper's Digital Loan Tracker to track your application, communicate with your loan officer, and upload and e-sign documents. Once your loan closes, the Mr. Cooper app with Home Intelligence℠ provides valuable information to help you make payments, track your home value and equity, monitor housing trends, and check your FICO® Score as often as you want (primary borrowers).
Flat fee for loan origination: Where some lenders charge an origination fee between 1% and 3%, most loans from Mr. Cooper cost $995.
What could be improved
Breadth of offerings: Mr. Cooper Mortgage covers the basics with conventional, FHA, and VA loan products, plus Fannie Mae and Freddie Mac low down payment programs. If you are looking for a specialty loan, you may be out of luck. At this time, Mr. Cooper does not offer jumbo loans or mortgages for the self-employed, foreign nationals, or for other situations that don't fit traditional molds.
No remote closing: Mr. Cooper Mortgage will require an in-person closing. The lender offers flexibility in closing locations and signing times for convenience where allowed.
Reputation: Although the Mr. Cooper Mortgage apps are well-liked, the lender itself does not earn the highest marks for customer satisfaction. It places well below the industry average in the J.D. Power 2020 customer satisfaction studies for mortgage origination and as a mortgage servicer. Also, Mr. Cooper earns a B- from the Better Business Bureau. The main mark against Mr. Cooper was a 2020 government action. The lender was fined for mishandling loan modifications, foreclosures, and mortgage insurance policy cancellations.
Transparency: Mr. Cooper Mortgage does not disclose details about loan products, mortgage rates, fees, or qualification criteria. You'll have to submit your phone number and email to get basic information from a loan officer. To see if you qualify, you may need to apply for a loan. This makes casual research difficult.
Application fee: Mr. Cooper Mortgage charges an application fee, or a higher origination fee where application fees are prohibited.
How to qualify
The loan offerings at Mr. Cooper Mortgage are straightforward, and the qualification requirements are easy to find.
For an FHA loan, you will need 3.5% down and a credit score of at least 580. FHA loans are available to borrowers with a credit score as low as 500 with a higher down payment, at the discretion of the lender.
The VA loan program does not require a down payment or a minimum credit score. Your creditworthiness will be evaluated by Mr. Cooper's underwriters.
For a conventional loan, Mr. Cooper Mortgage requires a credit score of 620. You will need a down payment of at least 5%. If your down payment is less than 20%, you will need to pay private mortgage insurance premiums. Your debt-to-income ratio should be no higher than 50%.
Alternatives to consider
New American Funding. For those who need a wider variety of loan options to find the right loan for your situation, New American Funding is a great resource. This lender offers conventional and government-backed mortgages, plus options for jumbo loans, self-employed borrowers, and others who need special consideration.
Citi Mortgage. If you're researching loan options and you want the maximum amount of information to consider and compare before giving your personal information to any lender, put Citi Mortgage on your list. Their mortgage rates, refinance rates, and home equity rates are easy to find with just a couple of clicks.
Mr. Cooper Mortgage is right for you if:
If you're into the F.I.R.E. movement (financially independent, retire early) or you just want to pay off your mortgage quickly, consider getting your mortgage from Mr. Cooper. The credit card rewards program that lowers the principal balance on your mortgage has the potential to take years off the life of your loan. Note that this is only a money-saving strategy if you use the credit card responsibly.
Mr. Cooper Mortgage is an excellent choice for existing Mr. Cooper customers who are ready to submit an application immediately. If you love using mobile apps to conduct business, all the better.
About the Author
Kimberly is a personal finance writer/editor, consumer credit expert, and financial literacy advocate. She has lots of degrees and personal experience that make her really good at helping people separate the good from the bad in financial products and habits. She likes to roller skate. Tweet her @rotterwrites.
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