Mr. Cooper Mortgage Review 2024

Mr. Cooper overview

Pros and cons of Mr. Cooper

How Bankrate scored Mr. Cooper

• Affordability: Mr. Cooper’s rates appear low at first glance, but they include discount points which you’ll need to pay upfront if you want the savings.
• Availability: This lender operates nationwide and in some U.S. territories. It offers a range of loan products, including options for investors.
• Borrower experience: Mr. Cooper funnels much of the application process onto its website and app. J.D. Power has given the lender lower marks for customer satisfaction.

Affordability: 10/10

While Mr. Cooper’s advertised rates are lower than Bankrate’s national averages (as of this review), those rates include discount points that could add up to sizable upfront costs. Additionally, this lender charges some fees.

Availability: 10/10

Mr. Cooper provides conventional loans as well as some government-backed loans (FHA and VA), along with options to refinance your existing mortgage. The lender is licensed to lend throughout the U.S., Puerto Rico and the U.S. Virgin Islands.

Borrower experience: 7.3/10

While Mr. Cooper has favorable reviews on Trustpilot, it’s important to note its reputation has some blemishes: The lender’s track record with the Better Business Bureau includes more than 1,600 complaints in the past three years, and it came in below average in J.D. Power’s latest customer satisfaction study of large mortgage originators. As far as your experience working with Mr. Cooper, however, its digital tools are top-notch, and include an app that allows you to check in on your application throughout the process. Unlike many lenders with 30- or 60-day preapproval windows, Mr. Cooper’s preapproval lasts for 120 days, and its VerifiedApproval offering generates an approval letter when you’re ready to make an offer on a home. In addition, the lender’s StreetSmarts tool allows you to browse listings and set up property alerts, which could aid you in your home search.

Learn more: How to choose a mortgage lender

Images courtesy of Mr. Cooper as of 4/1/2024. Note: Depending on method of contact, your individual credit profile and other circumstances, your experience might differ.

How to apply for a mortgage with Mr. Cooper

You can apply for a mortgage with Mr. Cooper online or by phone at 855-235-0991. Here are some tips to prepare for the process:

1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Learn more: How to get a mortgage

Refinancing with Mr. Cooper

Mr. Cooper offers both rate-and-term and cash-out refinancing options. If you refinance within three years of obtaining your loan, it’ll waive the origination fee, which equates to a savings of up to $1,500. (Note: This promotion is only for loans locked by June 30, 2024.)

Learn more: When should you refinance your mortgage?

Special programs offered by Mr. Cooper

1% Mortgage Markdown Program

Mr. Cooper’s 1% Mortgage Markdown Program offers a rate buydown to help borrowers cope with the sharp increase in mortgage rates. This program reduces your loan’s interest rate by a full percentage point for the first year. (Note: This promotion is only for loans locked by June 30, 2024.)

Close On Time Guarantee

The Mr. Cooper Close On Time Guarantee helps ensure your home loan will close on or before the contract closing date. If not, you’ll get a check equal to your first month’s principal and interest payment.

RateSwap

The RateSwap program from Mr. Cooper gives you at least one reason to get a mortgage now: You’ll be able to refinance it later — within three years — without paying an origination fee. (Note: This promotion is only for loans locked by June 30, 2024.)

• Methodology

  To determine a mortgage lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; assistance for first-time homebuyers - 10%; down payment - 10%
  • Availability: Loan products - 50%; licensing - 40%; credit score - 10%
  • Borrower experience: Rate transparency - 45%; customer service - 25%; convenience - 10%; days to close - 10%; rate locks - 10%; reputation (bonus)

  Learn more about our methodology.

  How we suggest lenders to compare

  To help you make the most informed decisions, our editorial team suggests two (2) alternative mortgage lenders for each lender reviewed in our comparison table. In most cases, these alternatives 1.) share the same strength (affordability, availability or borrower experience) as the lender reviewed; and 2.) rate highly for Bankrate Score. In the event more than two lenders meet these standards, we suggest the ones with the lowest APRs.