Mr. Cooper Mortgage Review 2022
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Our Take
3.5
The bottom line:
Mr. Cooper offers digital tools to manage your application and mortgage, but you'll start by working with a loan officer; you won’t find rates online. Rates and fees also tend to be higher than other lenders.
Full Review
Mr. Cooper: NMLS#2119
Min. Credit Score
620
Min. down payment
3%
Loan types and products
Purchase, Refinance, Home Equity, Fixed, Adjustable, FHA, VA
Pros & Cons
Pros
- Offers a robust digital experience.
- Will consider alternative credit data for FHA borrowers.
Cons
- Requires a call or email for personalized rates.
- Does not offer home equity loans or lines of credit, or home improvement loans.
Compare to Other Lenders
Min. Credit Score640 | Min. Credit Score620 |
Min. down payment3% | Min. down payment3% |
Loan types and productsPurchase, Refinance, Home Equity, Jumbo, Fixed, Adjustable, FHA, VA, USDA | Loan types and productsPurchase, Refinance, Jumbo, Fixed, Adjustable, FHA |
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Full Review
Mr. Cooper at a glance
Borrowers looking for low-down-payment loans, both conventional and government-backed, have options with Mr. Cooper. The lender offers a robust online experience, but to get rate information or learn more specifics on its loan products, you'll have to fill in a form or call to contact the lender.
Here's a breakdown of Mr. Cooper's overall score:
Variety of loan types: 4 of 5 stars
Ease of application: 5 of 5 stars
Rates and fees: 2 of 5 stars
Rate transparency: 1 of 5 stars
Mr. Cooper mortgage loan types
As mortgage lenders go, Mr. Cooper isn't afraid to reinvent itself. Originally known as Nationstar Mortgage Holdings, the lender rebranded as Mr. Cooper in August 2017. Then, in early 2019, Mr. Cooper acquired another lender, Pacific Union Financial, which significantly expanded its presence as a nonbank mortgage originator.
Mr. Cooper wants to create relationships with its borrowers that extend beyond closing day. "We want to build an integrated and unified experience for our customers, which puts the home, rather than the loan, at the center of everything we do," says Neenu Kainth, Mr. Cooper's chief digital officer.
Mr. Cooper’s menu of mortgage options covers most of the usual bases. Available loans include fixed and adjustable-rate purchase and refinance loans.
Mr. Cooper offers both conventional and government-insured mortgages, including FHA and VA loans. Like some other lenders, Mr. Cooper offers down payments as low as 3% on conventional loans and 3.5% on FHA loans, which may be especially helpful for first-time home buyers.
Borrowers who need some flexibility on credit score requirements will also find options at Mr. Cooper: The minimum is 580 for FHA loans and 600 for VA loans. For FHA borrowers with no credit history, the lender may combine nontraditional credit data with manual underwriting to increase the chance of qualification.
Mr. Cooper ease of application
Although Mr. Cooper is licensed to lend in all 50 states, it doesn't operate any public-facing branches, so the entire mortgage process unfolds remotely, including online application.
Once your application is submitted, Mr. Cooper's Digital Loan Tracker provides real-time progress updates so borrowers can track their application status. In addition to 24/7 tracking, you can view a mortgage to-do list that shows exactly what's needed to keep the process moving forward. The tracker also allows you to e-sign disclosures, upload financial documents and ask your loan team any questions.
After closing day, Mr. Cooper's mobile app can help you manage your mortgage and better understand your home's value. The app gives customers the ability to do more than just view their mortgage balance or make a payment (though it does that, too). Features include detailed information on your home equity, home value trends in your neighborhood and property taxes.
Mr. Cooper mortgage rates and fees
One of the most important considerations when choosing a mortgage lender is understanding what the loan will cost. In order to provide consumers with a general sense of what a lender might charge, NerdWallet scores lenders on two factors regarding fees and mortgage rates, according to the most recently available Home Mortgage Disclosure Act data:
Mr. Cooper earns 2 of 5 stars for average origination fee.
Mr. Cooper earns 2 of 5 stars for offered mortgage rates compared with the best available rates on comparable loans.
If you are a current Mr. Cooper customer, you may be eligible for a rate discount. According to their website, existing customers seeking a purchase loan may be eligible for a credit of 0.5% that's used to buy discount points. That translates to about $500 for every $100,000 financed.
Borrowers should consider the balance between lender fees and mortgage rates. While it's not always the case, paying upfront fees can lower your mortgage interest rate. Some lenders will charge higher upfront fees to lower their advertised interest rate and make it more attractive. Some lenders just charge higher upfront fees.
You can decide to buy discount points — a fee paid with your closing costs — to reduce your mortgage rate.
Deciding whether to pay higher upfront fees is a matter of considering how long you plan to live in your home and how much cash you have to apply toward closing costs when you sign the loan paperwork.
Mr. Cooper mortgage rate transparency
Customers hoping to do a little rate shopping on Mr. Cooper's website will be disappointed. No mortgage rates are published online — not even general estimates. You'll have to submit contact information through the online form or call to get a personalized rate quote.
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