Costco Mortgage Review 2021
Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.
Our Take
The bottom line:
Costco's lending marketplace is open to all, but only members get discounts on lending fees.
Full Review

Pros & Cons
Pros
- Caps lenders fees for Costco members.
- Lets you compare products and rates from several lenders.
- Has a mobile-enhanced website and automated mortgage-application process.
Cons
- Loan fee discounts available only to Costco members.
- No physical locations for face-to-face service.
Compare to Other Lenders
Min. credit score620 | Min. credit score620 | Min. credit score620 | Min. credit score620 | Min. credit score620 |
Min. down payment3% | Min. down payment3% | Min. down payment3% | Min. down payment3% | Min. down payment3% |
Loan types and productsPurchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA | Loan types and productsPurchase, Refinance, Home Equity, Reverse, Jumbo, Fixed, Adjustable, FHA, VA, USDA | Loan types and productsPurchase, Refinance, Fixed, Adjustable, FHA, VA, USDA | Loan types and productsPurchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, Home Equity | Loan types and productsPurchase, Refinance, Home Equity, Jumbo, Fixed, Adjustable, FHA, VA, USDA |
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Full Review
When you think of shopping at Costco, what comes to mind? Bulk produce, perhaps, or mega-packs of diapers and enough rib-eyes to feed a small army. But mortgages? Not so much.
Believe it or not, though, you can shop for a mortgage through the big-box wholesaler’s Mortgage Program — a lending marketplace available to Costco members and nonmembers alike.
While you can’t exactly shop for a home loan as you peruse camping gear or flat-screen TVs, you can go online to get rate quotes, contact participating lenders and apply for a purchase or refinance. Costco doesn't actually sell you a mortgage itself; it connects you with a platform of lenders to choose from.
For Costco members, the major advantage of the program is that the loan origination fees are capped at $350 for Executive members and $650 for all other members. That could be a substantial savings considering that origination fees can sometimes add up to thousands of dollars.
Note: Because Costco Mortgage is a marketplace made up of a variety of lenders, NerdWallet has not assigned it an overall lender star rating.
How a Costco mortgage works
The Mortgage Program for Costco Members is essentially a multi-lender marketplace where consumers can choose from several participating lenders and numerous loan options online.
Participating Costco lenders (as of December 2020):
Lending.com
Mutual of Omaha Mortgage
Strong Home Mortgage
ConsumerDirect Mortgage
CrossCountry Mortgage
How to apply for a Costco mortgage
A potential borrower can start by going to www.costcofinance.com, and filling out the short "Membership Information" and "Mortgage Details" forms. This information allows Costco to display mortgage rate and payment estimates from potential lender matches.
A look at Costco mortgage products
For starters, Costco’s multi-lender marketplace offers conventional (fixed-rate and adjustable) loans, as well as FHA, VA and USDA loans. According to a disclaimer on the Costco Mortgage Program website, its lenders may not be able to provide jumbo purchase and refinance loans at this time.
» MORE: Use our mortgage calculator to find out your monthly mortgage payment.
Methodology
NerdWallet’s overall ratings for mortgage lenders are evaluated based on four major categories: variety of loan types (purchase, refinance, fixed and adjustable, for example), ease of application, rates and fees and rate transparency. Among the factors we consider when scoring these categories are options to apply for and track loans online, the level of detail about mortgage rates on lender websites and our analysis of the rates and fees lenders reported in the latest available Home Mortgage Disclosure Act data. These scores generate ratings from 1 star (poor) to 5 stars (excellent).