Mr. Cooper Reviews

Mr. Cooper publishes its current rates for 15- and 30-year fixed-rate conventional loans and 30-year fixed FHA loans on its website. These rates are updated daily, given that mortgage rates are always changing.

From 2019 to 2021, the company’s average rates for home purchase loans have been slightly higher than the national average. In 2021, the average rate for homebuyers who went through Mr. Cooper was 0.06% higher than the national average.

Mr. Cooper average home purchase rate vs. national average

Mr. Cooper offers fixed-rate loans and adjustable-rate loans. Because mortgage rates have been higher than normal in 2022, many borrowers are now considering adjustable-rate mortgages. These loans typically have a set interest rate for the first three to 10 years of the loan, but the rate continually resets once that period is over.

When rates are lower, it often makes sense to go with a fixed-rate loan so you can lock in an ideal rate. However, when rates are higher, it might make sense to go with an adjustable-rate loan, especially if you can sell or refinance before your rate begins to change.

As you search for a mortgage company and compare rates, be aware of the difference between an interest rate and an annual percentage rate (APR). An APR is a better measure of the total cost of a loan because it includes not just your interest rate but also additional fees, such as discount points, loan origination fees and other charges.

Mr. Cooper does not have local branches, but it offers online tools and access to your loan agent online and by phone. You can apply online, and Mr. Cooper offers several other features to help in the homebuying, mortgage application and closing processes, like

• Pre-qualification within minutes for most borrowers
• Agent Assurance, which connects you with local real estate agents
• The StreetSmarts house searching tool
• The Mr. Cooper mobile app for accessing loan documents, making mortgage payments and accessing financial education materials
• A digital loan tracker that lets you follow the process from application to closing
• The Close On Time Guarantee, which covers your first month’s mortgage payment if Mr. Cooper misses your scheduled closing date
• The Zero Dollar Move program, which pays for your move (up to 50 miles) if you buy a home with a Mr. Cooper loan

Mr. Cooper application features

Mr. Cooper offers both home purchase loans and refinance loans, and they are available with fixed or adjustable rates.

Conventional loans have made up the majority of Mr. Cooper’s originations during 2020 and 2021, according to Home Mortgage Disclosure Act data submitted by Nationstar Mortgage. However, the company also originates FHA purchase loans, FHA streamline refinance loans, VA purchase loans and VA IRRRLs (interest rate reduction refinance loans).

Mr. Cooper doesn’t offer USDA loans. If you’re interested in a USDA loan, check out our guide on USDA-approved lenders.

In 2021, Mr. Cooper closed on 4,842 home purchase loans out of a total of 6,641 home purchase applications (73%).

Loan applications for home purchases only by year

Refinancing

More than half of the mortgages originated by Mr. Cooper in 2021 and 2021 were rate-and-term refinance loans, with cash-out refinances being its second most popular option.

During the same years, only about 3% of loans originated by Mr. Cooper were home purchase loans. This trend toward refinancing was common in the industry; because rates were so low in 2020 and 2021, many homeowners opted to refinance.

Home purchase vs. refinance loans by year

Mr. Cooper does not publish specific requirements for borrowers, but representatives told us the lender follows loan requirements from Fannie Mae and Freddie Mac for conventional loans.

Conventional mortgages that conform to these standards typically require a credit score of at least 620, a down payment of at least 3% and a debt-to-income (DTI) ratio of 45% or lower. Nonconforming conventional loans, like jumbo loans, often have different requirements, though.

Government-backed loans, like FHA and VA loans, generally have less strict requirements than conventional loans. You can get approved for an FHA loan with a credit score as low as 500, but you need a score of 580 or higher to qualify for a 3.5% down payment. You can get a VA loan with no down payment.

If you’re unsure of whether you can afford a loan, Mr. Cooper does offer calculators to estimate how much house you can afford, potential mortgage payments, the cost of renting versus buying and how much you could save by refinancing.

National mortgage requirements by type

Mr. Cooper does not publish its fees online. However, according to a Mr. Cooper representative, origination fees on typical conventional conforming loans are $1,500. Additional fees vary based on your type of loan, your down payment amount, the type of property and other factors.

If you apply, the company is legally required to send you a Loan Estimate within three business days of receiving your loan application. This document shows your estimated interest rate, closing costs and monthly payment amount.