Pros and cons of Mr. Cooper
Mr. Cooper Pros:
- Available in all 50 states, plus Puerto Rico and the U.S. Virgin Islands
- Wide range of loan types, including options for self-employed borrowers
- Preapproval lasts up to 120 days, which is longer than most lenders
- Incentive programs may help lower your rate or reduce closing costs
- Offers a close-on-time guarantee
Mr. Cooper Cons:
- Origination fees tend to be higher than other lenders
- No physical branches for in-person support
- Requires you to submit personal details to view rate quotes
- Legal issues and customer complaints in recent years
- Does not offer USDA loans
Mr. Cooper mortgage rates
Borrowers who get a mortgage through Mr. Cooper often pay more in interest compared to other lenders, according to data from the Home Mortgage Disclosure Act (HMDA). Since Mr. Cooper doesn’t list rates publicly, you’ll need to speak with a loan officer to see what terms you qualify for. To give you a clearer picture, we analyzed recent HMDA data to estimate the average Mr. Cooper interest rates that borrowers paid recently.
| Loan Type | Average Interest Rate |
| Conventional 30-Year | 7.08% |
| Conventional 15-Year | 7.66% |
| FHA 30-Year | 6.50% |
| VA 30-Year | 6.20% |
Average rate and fee data sourced from public rate and fee records required by the Home Mortgage Disclosure Act (HMDA).
Remember that interest rates vary a lot by customer. Your rate depends on your credit score, down payment, loan type, and home price. That means you shouldn’t take average rates (or advertised rates) at face value. Instead, pick three to five lenders you’re interested in and get rate quotes from each. Then, compare the interest rates, closing costs, and other fees you’re offered to see which lender can give you the best deal.
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Mr. Cooper Review for 2025
This Mr. Cooper lender review highlights one of the largest mortgage companies in the United States. Headquartered in Dallas, Texas, Mr. Cooper originates home loans and also services millions of mortgages across the country. The company offers a wide range of mortgage programs and online tools to help home buyers finance their dream homes. However, the lender’s higher origination fees and past legal issues may be a concern for some borrowers.
In March 2025, Rocket Mortgage announced an agreement to acquire Mr. Cooper, with the deal expected to close by the end of the year. The move could make it easier for borrowers to manage their loans by combining application, approval, and servicing under one company. Even if you didn’t originate your mortgage with Mr. Cooper, your loan could be transferred there, as the company is one of the country’s largest mortgage servicers.
Affordability
Mr. Cooper scores poorly on The Mortgage Reports’ affordability index, with average origination fees of $6,895, significantly higher than the national average of $2,792. The lender’s mortgage rates are also typically higher than those offered by other lenders.
However, Mr. Cooper offers promotions to reduce mortgage costs, such as the 1% Mortgage Markdown, which temporarily reduces your mortgage rate by 1% for the first year of a home purchase. The Close & Save program provides a bonus of up to $10,000 for buying and/or selling through Mr. Cooper’s network of preferred local real estate agents. Additionally, the RateSwap program allows you to swap your rate for a lower one later with a reduced origination fee.
Lending flexibility
Mr. Cooper offers a variety of loan types, including fixed-rate and adjustable-rate conventional loans, FHA, VA, jumbo, rate-and-term, and cash-out refinance options. Specialty loan options are available for vacation or second homes, as well as for self-employed borrowers. Homeowners can also get home equity loans.
For conventional loans, Mr. Cooper requires a minimum credit score of 620 and a down payment of at least 3%. FHA loans are available with a credit score of 580 and a minimum down payment of 3.5%. VA loans require a score of 600 and no down payment at all.
Trustworthiness
Mr. Cooper has a higher-than-average number of complaints filed with the Consumer Financial Protection Bureau (CFPB), suggesting potential issues with customer satisfaction. The lender received a below-average score in J.D. Power’s 2024 U.S. Mortgage Origination Satisfaction Study. The Better Business Bureau has recorded over 1,900 complaints against the company in recent years.
In April 2024, Mr. Cooper settled a class-action lawsuit for $3.6 million due to charging unlawful fees to customers who made payments online or over the phone. Despite these issues, the lender has received many positive customer reviews on Trustpilot, boasting a 4.1-star rating based on 2,472 reviews.
Customer experience
Mr. Cooper offers a 120-day preapproval window, which is longer than the typical 30- or 60-day window provided by other lenders. The VerifiedApproval tool generates an approval letter when you’re ready to make an offer, and the close-on-time guarantee reimburses your first month’s principal and interest if the loan misses the contract date.
You can browse listings and set up property alerts using the lender’s StreetSmarts tool. The mobile app also lets you track your application status in real time.
To get a rate quote, you’ll need to submit your contact information. Customer service is available by phone at 833-685-2566 or through a 24/7 online chat. The chat begins with a virtual assistant named “Coop,” but you can switch to a live agent with just a few clicks.
FAQs about Mr. Cooper
Your mortgage may have been transferred to Mr. Cooper because the company is one of the largest mortgage servicers in the U.S. Lenders often sell or transfer servicing rights to manage loans more efficiently. This means Mr. Cooper now handles your mortgage payments and escrow account.
Yes, Rocket Mortgage announced in March 2025 that it plans to acquire Mr. Cooper. The deal is pending regulatory and shareholder approval, with a closing date expected in late 2025. If finalized, the acquisition could combine loan origination and servicing under one company, potentially simplifying the process for future borrowers.
Mr. Cooper has faced several legal and regulatory issues. In 2024, it agreed to a $3.6 million class-action settlement over unlawful payment processing fees. The lender also has an above-average number of complaints filed with the Consumer Financial Protection Bureau. These issues have raised concerns for some borrowers.
Mr. Cooper’s mortgage rates are typically higher than those offered by other lenders. Additionally, the company does not display sample rates online, requiring potential borrowers to contact a loan officer for personalized information. This lack of transparency can make it challenging to compare rates.
You can apply for a mortgage with Mr. Cooper online through their website or by speaking with a loan officer over the phone. The application guides you through steps such as income verification, credit checks, and document uploads. Once submitted, a loan officer will reach out to discuss your options and next steps. You’ll need to provide standard financial information, including tax returns and bank statements.
Is Mr. Cooper the best mortgage lender for you?
This Mr. Cooper lender review shows that the lender works well for borrowers who want a fully digital experience and access to a wide range of loan options. The long 120-day preapproval window and tools like StreetSmarts may appeal to buyers who are still shopping for a home. Mr. Cooper is also an option for borrowers purchasing homes in Puerto Rico or the U.S. Virgin Islands, which not all lenders support.
That said, Mr. Cooper might not be the best option if you’re looking for lower closing costs, competitive interest rates, or dependable customer service. However, it could be a good choice if you’re comfortable with an online lender and don’t require in-person assistance.
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How The Mortgage Reports scored Mr. Cooper
The Mortgage Reports evaluates and ranks lenders based on four key factors, each weighted to reflect its impact on the borrowing experience.
- Customer experience (20%): Examines the lender’s digital and service accessibility, including the availability of an online pre-approval or pre-qualification process, ease of contact, and the presence of a current rates page on their website.
- Affordability (20%): Assesses the average origination charges and the average interest rate the lender offers.
- Lending flexibility (40%): Evaluates the lender’s minimum down payment and credit score requirements, as well as the availability of FHA, VA, and USDA loan options.
- Trustworthiness (20%): Measures customer satisfaction and reliability based on Consumer Financial Protection Bureau (CFPB) complaints per 1,000 loans and ratings from reputable third-party review platforms such as Trustpilot.
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Written by: Peter Warden