Costco Mortgage Review 2021

Good for Costco members who want to compare loan options and mortgage rates from several lenders through an online marketplace.

NerdWalletDecember 21, 2020
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Our Take

The bottom line: Costco's lending marketplace is open to all, but only members get discounts on lending fees.

Costco

Costco: NMLS#N/A (not a lender)

National / Regional

National

Min. Down Payment

3%

Loan Types and Products

Purchase, Refinance, Home Equity, Reverse, Jumbo, Fixed, Adjustable, FHA, VA, USDA

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

NerdWallet rating 
NerdWallet rating 
Min. Credit Score

620

Min. Credit Score

620

Min. Down Payment

3%

Min. Down Payment

3%

Loan Types and Products

Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA

Loan Types and Products

Purchase, Refinance, Home Equity, Jumbo, Fixed, Adjustable, FHA, VA

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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 FHAVA 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.