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.
Costco Mortgage offers fixed-rate mortgages, adjustable-rate mortgages, refinancing loans and VA loans.
The Costco Mortgage is available to Costco members and non-members, but lender fees will depend on membership status -- including whether you have an executive or non-executive membership.
|30 year fixed||5.21%||5.13%||+0.08|
|15 year fixed||4.39%||4.32%||+0.07|
|30 yr fixed mtg refi||5.29%||5.22%||+0.07|
|15 yr fixed mtg refi||4.40%||4.31%||+0.09|
|7/1 ARM refi||4.85%||4.82%||+0.03|
|15 yr jumbo fixed mtg refi||3.06%||3.10%||-0.04|
National Mortgage Rates
Regions Served by Costco Mortgage
Does Costco Mortgage Operate in My Area?
The Costco Mortgage program operates in all 50 states. The actual lender you use will depend on the state, but the program is available nationwide.
What Kind of Mortgage Can I Get With Costco Mortgage?
The types of loans available will depend on what lender you are matched up with, but generally the following loan types are available:
Fixed-rate mortgage: This is a mortgage where the interest rate is set at the beginning of the loan and does not change for the entire term of the loan. This is the most common and most stable type of mortgage. Costco offers fixed-rate loans with 10-, 15-, 20- and 30- year terms.
Adjustable-rate mortgage: An adjustable-rate mortgage is one where the interest rate can change after an initial fixed period. At Costco, 7/1 and 5/1 adjustable rate mortgages are available.
Jumbo loans: These are mortgages where the money borrowed is higher than the conventional loan limit. In most places the limit is $548,250, though in some high cost areas it can be as high as $822,375.
VA Loans: These mortgages are available to current military members and veterans. They require no down payment and frequently have better interest rates than conventional loans.
What Can You Do Online With Costco Mortgage?
Costco Mortgage’s online portal allows you to apply for a mortgage and get matched with a provider. You’ll get multiple offers and from there you can select which one you want to move forward with.
There isn’t an ability to manage your mortgage or make payments because Costco Mortgage is essentially a marketplace. The actual tools available will depend on the mortgage provider you match with.
Would You Qualify For a Mortgage From Costco Mortgage?
Again, Costco Mortgage does not actually originate loans. Whether you qualify for a loan will depend on the lender. That said, Costco does note they have lender partners who work with borrowers with less-than-perfect credit. Generally, a FICO score of at least 620 is required for a conventional loan.
What’s the Process For Getting a Mortgage With Costco Mortgage?
To get a mortgage with Costco mortgage, you’ll fill out your basic information on the company’s site including how much money you are looking to borrow and your FICO score. From there, you will be matched with several potential lenders and you can pick the one that you want to move forward with.
The steps after that will depend on the lender you selec. Generally, though, you’ll get pre approval based on your costs and score. Once you find a home, you’ll complete your application, have the loan underwritten and complete the sale.
How Costco Mortgage Stacks Up
It’s hard to compare Costco Mortgage to other mortgage companies because Costco doesn’t originate loans themselves. That said, it does connect you with a number of lenders, so if what you’re looking to do is shop for the best offer available for you, Costco may be a good choice.
Tips for Finding a Mortgage
- Working with a financial advisor can make mortgage shopping easier. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Don’t forget to factor in closing costs! You’ll need to pay these to finish your sale, so make sure you’ve accounted for them in your budget.