Mr. Cooper Mortgage Review 2023
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The bottom line:
Mr. Cooper offers digital tools to manage your application and mortgage, but it only lists sample rates on its website. Origination fees tend to be higher than other lenders’, according to the latest federal data.
Pros & Cons
- Has a robust digital experience and mobile app.
- Offers a 45-day rate lock option.
- Requires a call or email for personalized rates.
- Does not offer home equity loans or lines of credit, or home improvement loans.
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What borrowers say about Mr. Cooper mortgage
NerdWallet’s lender star ratings assess objective qualities, including rates, fees and loan offerings. To assess borrowers’ subjective experiences with lenders, NerdWallet has gathered customer satisfaction ratings from J.D. Power and Zillow.
Mr. Cooper receives a 678 out of 1,000 in J.D. Power’s 2022 U.S. Mortgage Origination Satisfaction Study. The industry average for origination is 716. (Mortgage origination covers the initial application through closing day.)
Mr. Cooper receives a 560 out of 1,000 in J.D. Power’s 2022 U.S. Mortgage Servicer Satisfaction Study. The industry average for servicing is 607. (A mortgage servicer handles loan payments.)
Mr. Cooper receives a customer rating of 4.91 out of 5 on Zillow, as of the date of publication. The score reflects more than 130 customer reviews.
Mr. Cooper mortgage variety of loan types
4 of 5 stars
Mr. Cooper’s menu of mortgage options covers most of the usual bases. Available loans include fixed and adjustable-rate purchase and refinance loans. Home equity loans and lines of credit are not available, but the lender does offer a cash-out refinance option.
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.
» MORE: Best lenders for FHA loans
Mr. Cooper mortgage ease of application
5 of 5 stars
The entire mortgage process with Mr. Cooper unfolds remotely, starting with your online application. Phone support and online chat are also available.
Mr. Cooper's Digital Loan Tracker provides real-time progress updates to track your application status. The tracker also allows you to electronically sign disclosures, upload financial documents and ask your loan team any questions.
After closing day, you can make payments and view your mortgage balance through Mr. Cooper's mobile app. The app also offers detailed information on your home equity, home value trends in your neighborhood and property taxes.
Mr. Cooper mortgage rates and fees
2.5 of 5 stars
Mr. Cooper earns 2 of 5 stars for average origination fee.
Mr. Cooper earns 3 of 5 stars for average mortgage interest rates.
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.
Mr. Cooper mortgage rate transparency
3 of 5 stars
While Mr. Cooper offers many digital conveniences, it lags behind some lenders in rate transparency. The Mr. Cooper website offers sample rates for 15- and 30-year conventional purchase loans. However, personalized rates are available over the phone or by filling out an online contact form.
Alternatives to Mr. Cooper mortgage
Here are some comparable lenders we review that borrowers can consider.
Better has a similar digital experience for tech-savvy borrowers, but it doesn’t offer VA or USDA loans. New American Funding also offers loans with lower credit score requirements.
More from NerdWallet
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).