Costco Mortgage Review: Rates, Fees, & Terms

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You shop at Costco for all things in bulk, but did you know you could get your mortgage there too? It sounds crazy – you buy eggs, coffee, and granola bars at Costco – how would you get a mortgage there?

Costco Executive members have access to Costco Mortgage services which provide low-cost mortgage services to its members.

You may even get a good loan if you aren’t an Executive member, but the largest savings are for those who pay for the higher membership.

Read our Costco Mortgage Review to see if it is worth using.

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Costco Mortgage Pros and Cons


  • It’s easy to shop around for the best mortgage in one place
  • You could save significant money on closing costs
  • The entire process is online and fast


  • Only Executive members get the best deals
  • You can’t have face-to-face service. Everything is online

Costco Mortgage Overview

Think of Costco Mortgage like LendingTree. It’s a marketplace for borrowers and lenders to meet and potentially close a loan.

Costco doesn’t have anything to do with any part of the process, and you don’t even submit your application to them.

Instead, you use their platform as the marketplace, looking for the right lender. When you find the right lender, you apply directly with the lender through Costco’s platform.

What Types of Mortgages Does Costco Offer?

Costco lenders offer almost every type of loan you could imagine, including the typical conventional, FHA, VA, and USDA loans.

These are your ‘common’ loans with both government-backed options (FHA, VA, and USDA) and ‘standard’ loans or conventional loans that aren’t backed by the government and require great credit and low debt-to-income ratios.

Costco lenders also offer jumbo loans (loans greater than the current conventional limits), investment property loans, and refinance loans, including cash-out refinance loans.

Most lenders offer both fixed-rate and adjustable-rate loans over various terms, giving borrowers plenty of options to find the right mortgage.

How Do Costco Mortgages Work?

The Costco mortgage process is a little different from any other process because they must verify your Costco membership.

You’ll complete a membership information form and then complete the information about the mortgage you need and yourself, so Costco can send you qualifying offers.

Once you have offers, you can apply directly with the lender. You’ll select the lender you want more information from and provide your contact information.

The lender takes over from there. Costco allows you to secure quotes from up to 4 lenders. I suggest taking advantage of that option, so you have plenty of programs to compare.

>> More: Best Mortgage Lenders

Costco Mortgage Rates and Terms

Costco is transparent with the rates and terms offered by its partner lenders. You can view the rates and terms offered at any time. When you’re actively looking, check back multiple times a day as rates change often.

Costco Mortgage Fees

One of the benefits of using Costco Mortgage is the savings you’ll get on the fees. Costco members pay lender fees of $250 or less. This includes all fees lenders may charge, including underwriting, processing, and application fees.

This doesn’t include third-party fees necessary to process a loan, though. You’ll still pay for an appraisal and title work.

The $250 fees are reserved for Costco executive members. If you’re a ‘standard’ Costco member or not a member, you may still find savings as the mortgage fees are capped at $550.

Costco Mortgage Features and Benefits

Easily Compare Rates

Costco marketplace makes it easy to compare rates from each lender. You have to complete individual applications and jump through each lender’s hoops when you shop around yourself.

Costco makes it easy by giving you one place to get up to four quotes so you can compare the Loan Estimates side-by-side and make a faster decision.

Relatively (Low) Origination Fees

Costco members pay low lender fees, which can be an incredible savings when you’re securing a mortgage.

Because you’re a Costco member, you automatically get the savings. It doesn’t matter how high your credit score is or isn’t, although that does affect whether you qualify for the loan.

Entirely Online Experience

Dealing with a loan officer in person or even on the phone can get tedious and time-consuming. Costco Mortgage makes it easy by providing a 100% online experience.

You apply when you have time and look over the documents and information when you can. You don’t have to play phone tag or make appointments to see the loan officer in person.

>> More: See the Best Online Mortgage Lenders

How Does Costco Compare to Other Mortgage Lenders?

#1. Costco Mortgage vs. Rocket Mortgage

Rocket Mortgage is a 100% online mortgage company offering conventional, FHA, VA, and jumbo loans. They don’t offer home equity loans or HELOCs.

To apply, you complete the application, processing, and all communication online, but that doesn’t mean they offer poor customer service. Rocket Mortgage has some of the best-rated customer services in the industry.

Rocket Mortgage offers competitive interest rates and fees, but you only get one quote. You can’t compare offers from other lenders unless you do the work and find other rates.

>> More: Rocket Mortgage Review

#2. Better Mortgage vs. Costco Mortgage

Better Mortgage is also an online lender, but they focus on their ability to close your loan in 32 days or less, which is faster than most Costco Mortgage partners. Better Mortgage offers competitive interest rates and fees, and they don’t charge origination fees.

Better Mortgage’s focus, however, is on conventional loans. They’ve offered FHA loans to some borrowers, but it’s not their focus, so if you have unique circumstances, Costco Mortgage may be a better option.

>> More: Better Mortgage Review

#3. NASB Mortgage vs. Costco Mortgage

NASB is a lender based in Missouri that offers loans nationwide. Their focus is on self-employed borrowers, which many lenders avoid, so it’s a nice change of pace.

NASB has high credit score requirements than most lenders, and their process is 100% online. They don’t have physical offices, so you must be comfortable with handling the loan process online or over the phone with a loan officer.

>> More: North American Savings Bank Mortgage Review

#4. Costco Mortgage vs. New American Funding Mortgage

New American Funding is a great alternative for borrowers with unique circumstances. Most lenders Costco Mortgage works with use automated underwriting. This means you must meet the basic requirements of a loan, or you won’t get approved.

New American Funding makes it much easier to get approved because an underwriter can manually look at your application and qualifying factors to decide if you qualify. Their interest rates and fees may be slightly higher than Costco Mortgage partners, but it’s because of their flexibility.

>> More: New American Funding Mortgage Review

How to Qualify for a Costco Mortgage

The good news is Costco Mortgage partners work with borrowers with all credit scores and qualifying factors. It’s best if you have great credit and a low debt-to-income ratio, of course. But if you have mediocre credit or a higher debt ratio, don’t give up.

Aim for a 620-credit score and a DTI of 43% or less, but still, apply if you don’t meet those requirements. The benefit of the higher credit score and lower debt ratio is lower fees and interest rates, but some lenders have unique programs that may cater to you too.

What Credit Score Do You Need for a Costco Mortgage?

Like any lender, the higher your credit score is, the better your chances of approval, but you can get approved with a credit score as low as 600 with some Costco lenders.

Is Costco a Good Choice for Mortgages?

Costco Mortgage makes it easy if you want to shop around for the best mortgage (you should). Plus, you benefit from much lower closing costs since Costco members save significantly on the lender costs.

Is Costco a Direct Mortgage Lender?

Costco doesn’t underwrite or fund the loans. They aren’t the lender – they are just the marketplace bringing together their members and qualified lenders to provide attractive financing options.

Bottom Line: Costco Mortgage Review

Costco is more than a place to buy your groceries and household goods. Members have access to many services, including mortgage services.

If you’re in the market to buy a house or refinance your mortgage, use your Costco membership to your advantage and get the best mortgage rates available to you.

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Kim Pinnelli
Kim Pinnelli

Kim Pinnelli is a Senior Writer, Editor, & Product Analyst with a Bachelor’s Degree in Finance from the University of Illinois at Chicago. She has been a professional financial writer for over 15 years, and has appeared in a myriad of industry leading financial media outlets. Leveraging her personal experience, Kim is committed to helping people take charge of their personal finances and make simple financial decisions.