Mortgage

Mr. Cooper (Nationstar) Mortgage Evaluate for 2020

overview

Mr. Cooper – formerly called Nationstar Mortgage – offers home loans and mortgage refinancing in all 50 states.

Borrowers can access conventional mortgages, FHA and VA mortgages through Mr. Cooper. The company does not offer USDA loans or any other niche product.

In terms of mortgage rates and fees, Mr. Cooper looks, on average, a little more expensive than other large lenders.

However, the interest rates vary widely depending on the customer. When you compare personalized mortgage rates and fees from a few different mortgage lenders, you may find that Mr. Cooper is the most affordable option for you.

Mortgage interest from Mr. Cooper

Looking at the 2019 average interest rates (the latest data available), Mr Cooper appears to have higher mortgage rates than other major lenders.

Average 30 year mortgage rate from major lenders

Mr. Cooper
Wells Fargo
Accelerate Loans
chase
30-year average interest rate, 20191

4.44%
4.22%
4.16%
4.22%

Monthly P&I payment *

$ 1,006
$ 980
$ 973
$ 980

Median Loan Costs, 2019

$ 5,450
$ 3,484
$ 5,075
$ 3,440

Median Origination Charge, 2019

$ 1,475
$ 1,199
$ 2,085
$ 1,279

However, it is important to note that prices vary depending on the customer.

In addition, Mr. Cooper may be available to assist applicants with credit scores below 600. When it helps many borrowers with lower credit, a company's average interest rates can be higher.

When you are considering getting a Mr. Cooper mortgage, it is worth comparing the interest rates of some other lenders so you know you are getting the best deal.

Average tariff and fee data comes from public tariff and fee records required by the Home Mortgage Disclosure Act (HMDA).

* Monthly principal and interest payment based on a home price of $ 250,000 down 20% assuming an average 30 year interest rate for each business for 2019. Your own interest rate and monthly payment will vary.

Check your new plan (November 17, 2020)

Mr. Cooper Mortgage Review for 2020

Aside from the interest rates and fees, here is what borrowers should know about Mr. Cooper.

Mr. Cooper has an "A" rating from the Better Business Bureau. The company appears to receive more customer complaints than other major lenders. However, many of these complaints have to do with Mr. Cooper's credit department (which you don't deal with when applying for a mortgage). There is no way to apply online. However, after submitting an application, you can upload documents and track your credit status online

It seems a bit strange that a company with a good mobile app and online services would not offer web-based applications.

To be fair, the company says talking face-to-face with a loan officer will help clients find the best type of mortgage. However, if you really want an all-online process, this may not be the company for you.

One potential benefit of working with Mr. Cooper is the company's on-time guarantee.

That guarantee states, "If an issue has delayed your close, we'll pay for your first month's mortgage (principal and interest)."

In addition, Mr. Cooper customers may be able to take advantage of the Mr. Cooper Real Estate Rewards program. The company says home buyers can save "potentially thousands" in brokerage fees and through a buyer bonus.

To access these savings, you must use an agent on the company's StreetSmarts network, which is managed by Mr. Cooper's subsidiary Xome.

Working with Mr. Cooper (Nationstar Mortgage)

As mentioned earlier, you will need to visit a loan officer to start applying. And you have to do that by phone or email because there are no publicly accessible branches.

When you receive an interest rate quote from Mr. Cooper, your loan officer may perform a "soft" credit check to get a sense of your creditworthiness and advise you of the right loan program. However, such reviews will not affect your score.

A “hard” credit check is only carried out if you submit a complete loan application.

Once your application is out of the way, the process becomes more of the 21st century.

You can securely upload your supporting documentation and monitor the progress of your application from any device, including your smartphone.

And when you talk about it, Mr. Cooper says his nifty app has won awards. In fact, you can even prequalify with it.

You can also use this app to monitor the progress of your application 24/7. And after graduation, you can use it to manage your home loan.

Mr. Cooper customer service reviews

In relation to the number of customers, this company receives more complaints with the Consumer Financial Protection Bureau than some of its peers.

Mr. Cooper's customer ratings appear to be mixed.

For example, 87% of reviews on Trustpilot on the day this was written rated Mr. Cooper either "excellent" (77%) or "great". However, other forums have less friendly customer reviews.

Companies
Mortgage origins 2019
CFPB complaints 2019
Complaints per 1,000 mortgages
2020 JD nominal power
Mr. Cooper

223,000
161
0.72
832/1000

Wells Fargo

1,026,800
342
0.33
840/1000

Accelerate Loans

774,900
187
0.24
883/1000

chase

527,600
188
0.36
860/1000

It's worth noting that a large part of Mr. Cooper's business is "servicing" credit. This includes collecting monthly payments and managing credit on a daily basis.

Often times, Mr. Cooper's mortgages were made by other lenders – and mortgage servicing is an area that often provokes ill will.

Therefore, the above complaint numbers may not apply to borrowers applying for a new loan through Mr. Cooper.

However, you may want to ask if your mortgage will be serviced by Mr. Cooper or sold to another service company when it is closed. Because this could affect your satisfaction with the company in the long term.

Mortgage loan products at Mr. Cooper

Mr. Cooper offers a useful, but not particularly wide range of loans. If available, you can opt for an adjustable rate mortgage (ARM) or a fixed rate mortgage.

The home loans that Mr. Cooper offers include:

Conventional Loans – You will likely need a credit score of 620 or higher and a minimum of 5% down payment to get a conventional loan with Mr. Cooper. If you have 20%, you are not paying mortgage insuranceHomeReady & Home Possible Loans – Backed by Fannie Mae and Freddie Mac, these loan programs typically allow down payments of 3% or more and are aimed at low-income or first-time home buyers. A home buyer training course is typically requiredFHA loan – Supported by the Federal Housing Administration and available for people with slightly damaged credit. You need a 3.5% deposit. Look out for expensive mortgage insuranceVA loan Almost exclusively for veterans and those still serving in the armed forces, VA loans offer no down payment, ongoing mortgage insurance, and low interest rates. Mr. Cooper needs a credit score of 600 or higher for a VA loan

Mr. Cooper does not offer USDA loans. So if you need any of these, you'll have to look elsewhere.

Refinancing with Mr. Cooper

Mr. Cooper offers conventional refinancing, FHA and VA refinancing in addition to his home purchase loans.

Homeowners with a current FHA or VA mortgage can qualify for the Streamline refinance. With these low doc refinance programs, you can get a lower interest rate and payment easier than other refinancing options.

Mr. Cooper also offers conventional and FHA payout refinancing. However, to get any of these you need a credit score of at least 660.

Where can I get a mortgage from Mr. Cooper?

Mr. Cooper is licensed in all 50 states and Washington DC. So it can lend pretty much anywhere.

However, there are no branches that are open to the public. So you will be interacting with staff via email, online and by phone.

When you're ready to apply, you can either call the website or fill out a callback form.

Mr. Cooper suggests that personal expert advice should guide potential borrowers more effectively in making the right mortgage product choice.

Is Mr. Cooper the Best Mortgage Lender for Me?

Is Mr. Cooper the Best Mortgage Lender for You? Well, that depends more on you than on the lender himself.

If Mr. Cooper is offering the type of loan you need, it could be a competitor.

But, as always, you'll want to compare the prices and fees of a few different companies.

Looking side-by-side at the cost of your loan estimates is the safest way to determine which lender can offer you the best deal on your mortgage.

Check your new plan (November 17, 2020)

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