Costco Mortgage Program Review: Overview, Facts, Features, Plans, Pros and Cons

Costco Mortgage Program Review: Overview, Facts, Features, Plans, Pros and Cons

Founded in 1976 and taking the name Costco in 1983, this national warehouse club retailer has become a favorite for members thanks to the balance of price and merchandise quality offered. The Mortgage Program for Costco Members allows both members and non-members to enjoy the utilization of its home equity credit marketplace. Its partnership with many loan providers results in an outcome of solid mortgage rates and a spread of loan products, including FHA, VA, and jumbo loans alongside fixed and adjustable-rate mortgages.

Costco Facts

Membership-only warehouse club that emphasizes value and quality among the various products it offers to its shoppers Although primarily known for in-store shopping, Costco offers a spread of other services, starting from vacation packages to insurance and mortgages. Costco doesn’t provide the loans directly; instead, they created a marketplace that connects interested individuals with a variety of home equity credit providers approved by the corporate. Members enjoy a spread of mortgage rates and a few lower costs, like a members-only hard dollar cap on loan origination fees which will instead be assessed as a percentage of the entire loan. The Mortgage Program for Costco Members marketplace users doesn’t need to be members. The Mortgage Program for Costco Members is managed entirely online; there are no physical locations to go to.


Costco mortgage rates review Costco has offered a spread of cost-effective services to members since it was founded in the 1970s. The corporate doesn't have any significant internal experience originating or providing loans. Still, it does have an extended diary of partnering with trustworthy, reputable external agencies to supply a variety of services outside of retail sales to its members. It’s also well-known for the extent of service and supports it offers to its customers. Costco features a very positive reputation and solid reviews for its mortgage program especially. The Mortgage Program for Costco Members offers access to a spread of lenders to members and non-members. However, certain members-only benefits will likely make some prospective home buyers consider signing up. Although not a lender in and of itself, The Mortgage Program offers a centralized marketplace where users can receive detailed initial quotes, request more information, and even lock during a rate without a standard preapproval process. While program participants should take care to vet the individual lenders they prefer to work with, The Mortgage Program for Costco Members may be a trustworthy place to start out.

The Mortgage Program for Costco Members – Current Rates

Loan Specifics

The Mortgage Program for Costco Members rates are highly variable in many cases, thanks to the complete range of lenders to which the corporate and its managing partner, First Choice Loan Services, offer access. This means that a spread of people and families across many demographics can find the loan product that best addresses their needs and takes advantage of any unique attributes they'll have, like status as an active-duty service member or veteran or qualification for a Federal Housing Administration or U.S. Department of Agriculture loan. Rates, terms, and conditions can vary significantly, supported by the precise financial organization with which you select to partner. In all relevant cases, members enjoy a cap on loan origination fees of $350 for Executive members and $650 for Gold Star and Business members, a big difference from the one-hundredth of total loan value commonly assessed. Users of The Mortgage Program for Costco Members marketplace have many options available, including:

Fixed-Rate Loans

As a product that gives long-term dependability concerning monthly payments, and budgeting considerations, fixed-rate loans are a superb choice for those that decide to stay within the same home for a significant period of your time and find the terms and conditions offered to be favorable. The Mortgage Program for Costco Members offers a spread of conventional loans from many various providers. Low deposit options are available, as are better rates and terms in exchange for a better payment.

Adjustable-Rate Loans

The differentiator driving adjustable-rate loans are flexible rates that don’t require refinancing. This will mean paying a fixed-rate mortgage during the first years of the loan and paying more afterward, counting on market factors. Those that decide to move or refinance relatively soon after receiving the loan may benefit the foremost from this arrangement.

Jumbo Loans

Jumbo loans are intended for mortgages above the utmost conforming loan limit set for conventional loans by the Federal Finance Housing Agency. That upper limit was $453,100 in 2018. These loans are especially useful for homebuyers who are either targeting a vast property or one during a very desirable real estate market. These loans frequently require a 20-percent deposit, which is a crucial consideration to stay in mind.

VA Loans

Qualifying active-duty service members, veterans, and surviving spouses enjoy the various favorable terms and conditions offered through a loan insured by the Department of Veterans Affairs. Advantages include low or no down payments, no need for mortgage insurance, VA counseling in cases of severe financial concern, and availability to those with a broader range of credit scores. Everyone eligible for a VA loan should consider this feature and compare rates against other mortgages that they qualify for.

CFHA Loans

FHA loans help first-time homebuyers through lowered qualification requirements and a reduced minimum deposit. With competitive rates and a required deposit of just 3.5 percent of the loan’s total value for credit, many 580 and above, FHA loans help those that haven’t owned a home before they buy their first house.

USDA Loans

USDA loans help homebuyers in rural areas secure mortgages, though some suburban homes can also apply. These loans offer easier qualifying requirements, like a zero deposit requirement. Because the agency guarantees loans issued by local lenders, rates are low also. The USDA loan is a desirable option for those trying to find homes in qualifying areas.

The Mortgage Program for Costco Members’ Customer Experience

As a set of loan providers gathered into one marketplace by The Mortgage Program for Costco Members and First Choice Loan Services, The Mortgage Program doesn't have a personal ranking on the J.D. Power U.S. Primary Mortgage Origination Satisfaction Study. However, program participants can check the J.D. Power study to seek out more once a possible loan is identified. Costco’s reputation for strong customer service carries over into The Mortgage Program for Costco Members. The corporate offers an in-depth initial quote request engine on its website and doesn’t stop there. Applicants can prefer to then receive more detailed quote information from a spread of lenders and may even lock in one offered rate, albeit no official preapproval has taken place. The Mortgage Program works to make sure that its rates are consistent between what's initially provided online and, therefore, the final offered terms before a loan is officially prescribed, both for members and non-members. The program includes an all-purpose contact number, 800-793-0759, available between 9 a.m. and 9 p.m. Eastern Time, Monday through Saturday. The website allows interested homebuyers to receive quotes from lenders quickly. Still, it doesn’t offer much specific information or guidance except an in-depth FAQ about the method – likely thanks to the various different financial institutions involved. The web nature of the interaction and lack of physical locations mean phone and online support are far more critical. The initial rate request tool is vital and allows for the adjustment of the many factors to match initial rates and find the most straightforward quote possible. A Social Security number isn't required for an initial quote. Comments online about the service, like those found through the business rating site Trustpilot, are exceptionally positive. With no rating below four out of 5 stars and roundly supportive comments, it’s clear how users feel about securing mortgages through The Mortgage Program for Costco Members.

Mortgage Lender Reputation

The Mortgage Program for Costco Members connects borrowers to lenders through a web marketplace. It earned a very high ranking on Trustpilot, with a 9.7 out of 10 ratings, supported quite 500 reviews. Because The Mortgage Program and First Choice Loan Services offer access to a spread of various lenders, there's no individual ranking for the program through the higher Business Bureau. However, ratings for individual lenders are often found easily through the BBB website.
  • Information collected Nov. 14, 2018.
  • Mortgage Qualifications
  • Credit Score-Category Likelihood of Approval
  • 760 or higher Excellent Very likely
  • 700-759 Good Likely
  • 621-699 Fair Somewhat likely
  • 0-620 Poor Somewhat unlikely
  • None N/A Unlikely
Because The Mortgage Program for Costco Members is a web marketplace with an excessive number of lenders and offers numerous different types of loans, there's tons of flexibility involved. Specific terms will differ from one lender to the following, then will requirements. Still, understanding how credit scores impact rates and terms are essential. A review of standard classifications can help develop an understanding of what to expect when seeking out initial quotes. Generally, the upper the score, the better it's to get whichever loan you’d like. Consumers with lower credit shouldn’t abandon hope, however. Programs like FHA, VA, and USDA loans are all excellent options for people with lower credit scores. Therefore the many potential lenders available can make it easier to seek out a partner than by making individual inquiries from one bank to subsequent.

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