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Mr. Cooper Mortgagemight be a fit for you if: You want to be guided by humans through the loan process. Mr. Cooper combines typical rates and strong guidance to get you where you need to be, even if you're a first-time home buyer. See what this straightforward lender offers in the following Mr. Cooper Mortgage review.
Best for: Over-the-phone guidance and a loaded app
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. = Best = Excellent = Good = Fair = Poor
Bottom Line
Mr. Cooper agents help you navigate the tricky home-buying process. Over-the-phone guidance and a website tracker make it easier to tell how things are going and estimate how long it'll take to close a mortgage. Even after you close, you can manage your active mortgage, check current rates, and monitor your home value through the app.
Min. Credit Score
580 FHA
600 VA
620 Conventional
580 - 620
Min. Down Payment
3% - 3.5%
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, 25y, 20y, 15y
Adjustable Rate Terms
3/1, 5/1, 10/1, and 3/6, 5/6, 7/6, 10/6
Top Mortgage Lender
It's important to consider multiple mortgage lenders to find a good fit for you. We've listed one of our favorite lenders below so you can compare your options:
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
At Motley Fool Money, mortgages are rated on a scale of one to five stars, with five stars meaning "best." We primarily focus on rates and fees, customer service, and loan versatility. This includes factors like application process, customer service channels available, and a variety of loan products.
I'm a mortgage writer for Motley Fool Money. I've written hundreds of articles reviewing and discussing financial products, from low-APR credit cards to zero-commission brokers. Top of mind here is making clear the pros and cons of your mortgage broker, so you can choose with confidence.
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Full Mr. Cooper Mortgage review
Mr. Cooper Mortgage (NMLS #2119) offers a straightforward application process and additional aftercare. Pre-approval can be done fast online. Moving forward with a loan boils down to "call a representative," who takes you through next steps.
You can check your progress on the Mr. Cooper app (which has mixed ratings). After you buy, you can monitor your home value and refinance rates, plus make payments via the app. This is especially useful when rates change.
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
Mr. Cooper mortgage rates
Mr. Cooper's mortgage rates trend slightly lower than 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 15-year and 30-year mortgages.
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 borrowers thousands of dollars.
Mr. Cooper refinance rates
Mr. Cooper's refinance rates trend slightly lower than 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.
Mr. Cooper fees
Overall, Mr. Cooper's fees are fairly standard among lenders.
You can expect to pay Mr. Cooper the following fees:
These don't include fees you might pay to other sellers as part of the home-buying process -- inspection fees, survey fees, and so on.
That said, some online competitors charge fewer mortgage fees than Mr. Cooper.
Ways to save money with a Mr. Cooper mortgage
Mr. Cooper® 1% Mortgage Markdown
How to qualify: Get a new home loan in 2024.
What you get: Mr. Cooper will reduce your effective interest rate and effective monthly payment for one year.
Mr. Cooper® RateSwap
How to qualify: Get new home loan in 2024.
What you get: Mr. Cooper will waive the origination (application fee in New Jersey) up to $1,500 on a refinance within 39 months of the purchase loan's lock date.
Mr. Cooper customer service
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.
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 users find it convenient, Mr. Cooper's mobile app has had mixed reviews recently. Login issues are the number one cited issue, especially on Google Play, followed closely by payment issues. It's great that Mr. Cooper has an app, but a little worrying that recent reviews are so negative.
How to apply for a mortgage with Mr. Cooper Mortgage
Applying for a mortgage with Mr. Cooper is straightforward -- here's how.
1. Call a Mr. Cooper Agent for pre approval
You ask for a pre-approval letter over the phone. A Mr. Cooper agent will ask you for some basic information, including your income and assets. It takes a few minutes to apply. Mr. Cooper will perform a soft credit check that won't impact your credit score.
Your pre-approval letter is valid for 120 days.
You can reach a Mr. Cooper agent at 833-788-2972.
2. Once you find your home, apply for a mortgage
You can apply for a Mr. Cooper loan online or by calling an agent at 833-788-2972.
According to Mr. Cooper, the soonest it may approve your loan is 21 days for conventional loans and 30 days for FHA and VA loans. There's not a lot of info out there on average closing times, but Mr. Cooper has one point in its favor: the Close On Time Guarantee. If Mr. Cooper fails to close your loan by the promised deadline, it'll cover your first month of mortgage payments.
Have the following information ready to make the process faster:
Purchase contract signed by all parties
Photo identification for each borrower
Authorization to pull credit report
One to two years of tax returns (personal, business, and/or income)
Two years of W-2 forms
The most recent 30 days' worth of pay stubs
Most recent two months of statements for all accounts listed on application (bank accounts, investment accounts, retirement accounts, credit cards, loans)
A declaration of any legal circumstances that may affect your financial situation (divorce, alimony, child support)
Letter of explanation for any large deposits (gift letters, sale of asset)
Rental history
Are you qualified?
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.
About Mr. Cooper Mortgage
Mr. Cooper started out as Nationstar Mortgage in the 1990s, but in 2017, it decided to rebrand and become the more approachable-sounding "Mr. Cooper." This lender is pretty big in the mortgage world -- actually, it's the largest home loan servicer in the U.S. now. That means it's handling mortgages for over 5 million folks across the country.
Today, Mr. Cooper is trying to shake up the mortgage industry with a more user-friendly approach. It has some innovative tools and decent loan options.
Mr. Cooper's mortgage rates trend slightly lower than 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.
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.
Mr. Cooper's refinance rates trend slightly lower than the national average. Through its RateSwap perk, the lender gives up to $1,500 in credit for eligible borrowers refinancing their home.
Qualifications vary by the type of loan you want. A mortgage specialist will help you decide which one is best for you, and they can clarify what you qualify for.
Mr. Cooper Mortgage offers fixed-rate mortgages, adjustable-rate mortgages, conventional, FHA, VA, jumbo loans, and HELOCs.
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