Mr. Cooper mortgage rates
Looking at the most recent data available, Mr. Cooper’s mortgage interest rates appear to be middle of the road when compared with other major lenders. Its average loan origination fees and total borrowing costs are on the higher end of the spectrum, too.
But it’s important to remember that rates vary by customer. If you’re thinking about getting a mortgage from Mr. Cooper, make sure to compare rates from a few other lenders so you know you’re getting the best deal.
Average mortgage rates at major lenders
| Mr. Cooper | Rocket Mortgage | Wells Fargo | Freedom Mortgage | |
| Avg 30-Yr Interest Rate, 20211 | 3.13% | 3.00% | 3.14% | 2.66% |
| Median Total Loan Costs, 20211 | $4,480 | $4,670 | $3,600 | $3,880 |
| Median Origination Fee, 20211 | $1,795 | $2,430 | $1,330 | $0 |
Average rate and fee data were sourced from public rate and fee records required by the Home Mortgage Disclosure Act (HMDA).
Find your lowest mortgage rate. Start hereMr. Cooper mortgage review for 2024
Headquartered in Dallas, Texas, Mr. Cooper is among the largest non-bank mortgage lenders in the U.S. The company doesn’t offer additional financial products like bank accounts or credit cards, but it’s well suited for those looking to purchase a new home or refinance an existing one.
One potential benefit of working with Mr. Cooper is the company’s Close-On-Time Guarantee. Mr. Cooper’s website states that “We’ll close your loan on time, or your first month’s mortgage payment (principal + interest) is on us.”
If you are a returning Mr. Cooper customer, then you may also be in line for a friends and family discount of up to $650 off your loan origination fee and “1% of the cost of your loan, which could mean a lower interest rate.”
On the other hand, the biggest drawback to working with Mr. Cooper is that it doesn’t offer home buyers a fully online mortgage application process. But after submitting an application, there are options to upload documents and track your loan status online.
It seems a bit odd that a company with a good mobile app and online services doesn’t offer web-based applications. To be fair, the company says that talking directly with a loan officer helps customers find the best type of mortgage. But if you really want an all-online process, this might not be the company for you.
Working with Mr. Cooper (Nationstar Mortgage)
As we mentioned, you have to go through a mortgage professional to begin and complete your application. And you have to do that by phone calls or email because there are no branches open to the public.
When you get a rate quote from Mr. Cooper, your loan officer may carry out a “soft credit check” to get a feel for your credit score and point you toward the right loan program. But such checks don’t affect your score. Only when you submit a full loan application will a “hard credit check” be carried out.
Once your application is out of the way, the process becomes more 21st century. You can securely upload your supporting documentation and monitor your application’s progress from any device, including your smartphone.
And speaking of that, Mr. Cooper says its mobile app has won awards. Indeed, you can even prequalify using it. This app also lets you monitor your application’s progress 24/7. And, after closing, you can use it to manage your home loan.
Mr. Cooper customer service reviews
As for Mr. Cooper’s customer reviews, these seem to be mixed. For example, on the day this was written, 87% of reviews on Trustpilot rated Mr. Cooper either “excellent” (77%) or “great.” But other forums have less kind customer reviews.
It also features a below-average rating with the Better Business Bureau (BBB), and the lender’s Mortgage Origination Satisfaction score lagged behind the national average in J.D. Power’s latest survey.
Customer service reviews at major lenders
| CFPB Complaints, 20214 | Complaints Per 1,000 Mortgages, 20215 | J.D. Power Satisfaction Score, 20216 | |
| Mr. Cooper | 284 | 0.71 | 800/1,000 |
| Rocket Mortgage | 376 | 0.24 | 876/1,000 |
| Wells Fargo | 488 | 0.58 | 832/1,000 |
| Freedom Mortgage | 262 | 0.35 | 829/1,000 |
Relative to the number of customers it has, this company also gets more complaints filed against it with the Consumer Financial Protection Bureau than some of its peers. But Mr. Cooper still has fewer than one complaint for every 1,000 mortgages it underwrites.
Mortgage servicing
It’s worth noting that a big part of Mr. Cooper’s business is servicing loans. A loan servicer collects monthly payments and conducts the day-to-day management of loans.
Often, the mortgages Mr. Cooper services were originated by other lenders — and loan servicing is an area that frequently creates ill will. So the complaint numbers above might not be as applicable to borrowers applying for a new loan through Mr. Cooper.
But one thing you may want to ask is whether your mortgage will be serviced by Mr. Cooper or sold to another servicing company after it’s closed. Because this could affect your satisfaction with the company long-term.
Mortgage loan products at Mr. Cooper
Mr. Cooper offers a useful but not especially wide range of mortgage loans. Where available, you can opt for an adjustable-rate mortgage (ARM) or a fixed-rate one.
The home loans Mr. Cooper offers include:
- Conventional loans: You’ll likely need a credit score of 620 or higher and a down payment of at least 5% to get a conventional loan with Mr. Cooper. If you have 20% down, you won’t pay for private mortgage insurance (PMI)
- HomeReady & Home Possible loans: These mortgage types are backed by Fannie Mae and Freddie Mac and typically allow down payments starting at 3% and are geared toward lower-income or first-time home buyers. A home buyer education course is usually required
- FHA loans: Backed by the Federal Housing Administration and available to those who need flexible credit requirements. You need a down payment of 3.5 percent. This loan type requires mortgage insurance premiums (MIP) for the life of the loan or until it is refinanced
- VA loans: Almost exclusively for veterans and those still serving in the armed forces, VA loans offer zero down payment, no continuing mortgage insurance, and low rates. Mr. Cooper requires a credit score of 600 or higher for a VA loan
The lender doesn’t offer jumbo loans by name. However, it does have a High Balance and Super Conforming loan program for those who require higher loan amounts. Mr. Cooper also doesn’t offer USDA loans, so if you need one of those, you’ll have to look elsewhere.
Refinancing with Mr. Cooper
In addition to home purchase loans, homeowners who are looking to refinance their existing mortgages have options, too. Mr. Cooper a few types of refinance loans to help borrowers lower their monthly payments, own their homes sooner, or tap their equity.
- Rate-and-term refinance: Exchange your original mortgage with a new one that offers more favorable loan terms and/or a lower interest rate
- Cash-out refinance: Access your home equity by replacing your current mortgage with a new, larger loan amount, and then receiving the difference as a lump sum of cash. Cash-out refinance loans are also available for FHA and VA loans
- FHA Streamline Refinance: A low-doc, low-cost refinance loan designed for FHA homeowners
- VA IRRRL: Also known as the Veterans Affairs Interest Rate Reduction Refinancing Loan, this is a low-doc, low-cost mortgage refinance
Keep in mind that refinancing your mortgage involves another round of closing costs and loan origination fees.
Where can I get a mortgage with Mr. Cooper?
Mr. Cooper is licensed in all 50 states and Washington D.C., so it can lend pretty much anywhere. But the company doesn’t have physical branch locations. So you’re going to interact with its people through email, online, and over the phone.
When you’re ready to apply, you can either call or complete a callback form on the website. Mr. Cooper suggests that getting personal advice from an expert should more effectively guide prospective borrowers toward the right choice of mortgage product.
Is Mr. Cooper the best mortgage lender for me?
Is Mr. Cooper the best mortgage lender for you? Well, that depends more on you than the lender itself.
If Mr. Cooper offers the type of loan you need, it might be a contender. But as always, you’ll want to compare rates and fees from a few different companies. Looking at Loan Estimates side by side is the surest way to know which lender can offer you the best deal on your mortgage.
Methodology
The Mortgage Reports considers multiple factors when reviewing lenders. These factors include credit and down payment requirements, loan types offered, customer service indicators, and availability of online tools. We then use these factors to rank lenders in four categories:
- Lending flexibility: Includes the number of loan types offered, special programs offered, minimum down payment requirements, and minimum credit score requirements
- Customer service: Includes CFPB complaints per 1,000 loans and average rating from other top rating services
- Ease of application: Includes the availability of an online pre-approval or pre-qualification process
- Online experience: Includes the robustness of the lender’s online offerings, including online chat availability, phone number availability, and learning center/help center availability
