Costco Mortgage Review: Yes, They Do Home Loans Too, Kind Of

Table of Content

• A look at Costco mortgage products
• How to apply for a mortgage with Costco
• Frequently asked questions
• Breakdown of Costco Mortgage Program overall review score
• Today's Rates
• Roof Damage: Here's What Homeowners Insurance Covers, and What It Doesn't
• How are the refinance rates through the Mortgage Program for Costco members?

Lender origination fees — such as the application fee, underwriting fees, and processing fees — are capped at $250 for Executive members and $550 for other members. The company estimates the discount in fees plus access to competitive interest rates can save members an average of $9,745 over the typical life of the loan. Lender fees are capped for Costco members, which can help you potentially save thousands of dollars.

Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Opinions expressed therein are solely those of the reviewer. The information, including rates and fees, presented in the review is accurate as of the date of the review. A potential borrower can start by going to , 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. The agent did a good job, honest and best suggestion for us to choose on the locked-in rate.

A look at Costco mortgage products

At NextAdvisor we’re firm believers in transparency and editorial independence. Editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by our partners. Editorial content from NextAdvisor is separate from TIME editorial content and is created by a different team of writers and editors. VA Interest Rate Reduction Refinance Loan , is designed for VA loan borrowers looking to lower their interest rate or switch from an adjustable-rate to a fixed rate.

Better Mortgage offers competitive interest rates and fees, and they don’t charge origination fees. Costco Mortgage is a mortgage program from the Costco Wholesale chain -- but unlike the cheese puffs and toilet paper, you don’t have to buy mortgages in bulk. Costco does not actually originate the loans itself, but offers the service to its members through CrossCountry Mortgage, a company based in Ohio. There are a number of actual lenders involved in the program, including national banks and mortgage banks. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site.

How to apply for a mortgage with Costco

The Costco Mortgage Program was a marketplace that offered Costco members the ability to compare loan options and mortgage rates from several participating lenders. Through this program, Costco members were eligible for low flat fees based on membership tier, translating to significant savings on loans. Compare other mortgage lenders and read reviews on Bankrate. The Costco mortgage program might be ideal if you’re a Costco member looking to compare quotes from a range of lenders. If you’re a Costco Gold Star or Executive member, you’ll definitely benefit from the cap on origination fees that may save you hundreds.

Since a home might be the biggest purchase you’ll ever make, saving money on your mortgage is an important goal. When you consider your readiness to apply for a home loan, keep in mind that the best mortgage rates are reserved for borrowers with the best credit scores. You can apply for an FHA loan with a credit score as low as 500. But an applicant with a 720 credit score gets more loan options and a much lower interest rate, so ends up paying a lot less over time. A better rate can save you thousands -- sometimes tens of thousands -- of dollars over the life of the loan. Costco also advertises discounted lender fees, which can help members save thousands of dollars upfront.

Frequently asked questions

This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. The program was easy to use and I was able to do it all online and by phone which was very convenient. The reduced fees were as advertised for Costco members, but I missed that there were additional costs/fees. The loan officers I worked with were extremely helpful and patient in answering my questions. Yes, you can apply for an FHA loan through the mortgage program for Costco members and get the benefit of the lender fee cap.

Shopping for the best product is a smart way to approach any major financial decision. Because many lenders participate in the program, the most common mortgage types are well-covered, including FHA loans and VA loans. Some less-common mortgage programs are available as well, like USDA loans and non-QM loans. Instead, there are mortgage rates offered by lenders participating in The Mortgage Program for Costco.

Costco members can enjoy a limit of $350 or less on origination fees, depending on membership level. Another free lender marketplace is LendingTree, offering access to over 1,500 lenders. But unlike Costco, LendingTree shares your info with those lenders to contact you. Potentially, this could lead to an email inbox full of lender spam long after you’ve chosen who you want to originate your mortgage. Kim Pinnelli is a Senior Writer, Editor, & Product Analyst with a Bachelor’s Degree in Finance from the University of Illinois at Chicago. She has been a professional financial writer for over 15 years, and has appeared in a myriad of industry leading financial media outlets.

Most lenders Costco Mortgage works with use automated underwriting. This means you must meet the basic requirements of a loan, or you won’t get approved. You’ll complete a membership information form and then complete the information about the mortgage you need and yourself, so Costco can send you qualifying offers. Instead, you use their platform as the marketplace, looking for the right lender. When you find the right lender, you apply directly with the lender through Costco’s platform. Costco doesn’t have anything to do with any part of the process, and you don’t even submit your application to them.

Costco Mortgage makes it easy by providing a 100% online experience. The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters. We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

Costco doesn't actually sell you a mortgage itself; it connects you with a platform of lenders to choose from. Aim for a 620-credit score and a DTI of 43% or less, but still, apply if you don’t meet those requirements. The benefit of the higher credit score and lower debt ratio is lower fees and interest rates, but some lenders have unique programs that may cater to you too.