Mr. Cooper Mortgage Review 2023

Pros and cons

Mr. Cooper overview

Mr. Cooper is a non-bank mortgage originator and servicer that operates throughout the U.S. The lender, formerly Nationstar, was founded in 1994 and is headquartered in Coppell, Texas. Mr. Cooper offers a number of mortgage options, including low-down payment conventional loans, investment property loans and FHA and VA loans, along with free 45-day rate-locks. The lender also offers a “Close on Time Guarantee” for those purchasing a new home with a conventional loan. Borrowers moving within 50 miles of their current home might also qualify for the lender’s Zero Dollar Move program, which covers relocation costs.

Mr. Cooper is good for

Borrowers looking for an online process, an easy-to-use app and a wide variety of mortgage options

Breakdown of Mr. Cooper Mortgage overall score

• Affordability: This lender’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 nationally and offers a range of loan products, including options for investors.

• Borrower experience: Mr. Cooper funnels much of the process onto its website and app, which are slick and easy to use. 

Methodology

To determine a mortgage lender’s Bankrate Score, Bankrate’s editorial team rates lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews. Here is our full methodology.

Affordability: 5/5

While Mr. Cooper’s advertised rates are lower than national averages, there is a catch: They assume you’ll pay discount points that could add up to sizable upfront costs. 

Additionally, Mr. Cooper charges lender fees and application fees. However, the lender will pay your moving expenses if you’re relocating within 50 miles of your current address (with some limitations), which can make a difference for your bottom line. Also, Mr. Cooper doesn’t charge a fee for rate locks or underwriting.

Availability: 4.8/5

Mr. Cooper provides conventional loans as well as some government-insured 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: 4.7/5

With 4.1 million customers, Mr. Cooper is a top 15 mortgage originator and the third-largest servicer in the U.S. While the lender 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 3,000 complaints in the past three years, and it ranks near the bottom in J.D. Power’s customer satisfaction study of large mortgage originators.

As far as your experience working with Mr. Cooper, the lender’s mobile app makes it convenient to apply online, monitor your application status and make monthly payments. If you prefer, you can contact the lender at 833-685-2565 during customer service hours Monday through Saturday. You won’t be able to meet with a loan officer at a branch location, however. Instead, all your communication will be via call center, website or the app.

Refinancing with Mr. Cooper

Mr. Cooper offers refinancing; you can apply through the lender’s website or via its call center.

Alternatives to Mr. Cooper Mortgage

• LoanDepot mortgage review – This lender offers both an online option and more than 200 branches nationwide.
• Freedom Mortgage review – If you’re looking for a HELOC, Freedom Mortgage might fit the bill.
• Rocket Mortgage review – This giant in the industry offers a convenient process and a trove of educational resources online.