Costco Mortgage Review 2021

Costco mortgage rates

ProductInterest RateAPR
30-year fixed rate3.250%3.259%
15-year fixed rate2.750%2.766%
5/1 adjustable rateN/AN/A

Rates updated 7/26/2020

With 30-year fixed mortgage loan rates dropping below 3% for the first time ever, right now is a great time to purchase a new home or refinance your existing loan. Costco, the national warehouse store, offers a mortgage program that works with approved lenders to help its members find competitive mortgage loan rates and cut down on closing costs. So far, the program has provided over 160,000 home loans and $38 billion in capital to consumers across the country. Of the consumers who opted for a Costco mortgage, 92% ranked the program as good, very good or excellent.

Why it might pique your interest

Costco is a trusted name with a reputation for providing quality items at a discount. Although most people associate the warehouse wholesaler with food and household items, Costco also offers automotive services, vacation packages, optical care and financial services. Gold Star and Executive members can save on the associated costs of closing on a mortgage loan by going through the Costco Mortgage Program.

Costco does not underwrite the mortgage loans itself. It works with a group of approved lenders — NBKC Bank,, Consumer Direct Mortgage, Strong Home Mortgage, Mutual of Omaha Mortgage, NASB Home Loans, and Cross Country Mortgage instead. These approved lenders will quote current rates tailored to your individual ZIP code and credit score. Costco does cap the lender fees for their members, with Gold Star members paying no more than $650 and Executive members paying $350 or less.

30-year fixed rate mortgage offered through NBKC Bank; 15-year fixed rate mortgage offered through Strong Home Mortgage (both lenders are in the Costco Mortgage Program).

Costco mortgage overview

Loan types:

  • 30 year fixed-rate
  • 15 year fixed-rate
  • 5/1 ARM
  • 7/1 ARM
  • 10/1 ARM
  • Refinance
  • Cash-out refinance
  • Jumbo loans
  • VA loans
  • FHA loans
  • USDA loans
  • HELOCs

Pros and cons


  • Costco has a reputation for trustworthy and reliable service. 
  • It works with different lenders so you can get the mortgage loan product you need, as well as a range of quoted loan rates to choose from. Once you fill out some basic preliminary information, you’ll immediately receive quotes from four different lenders.
  • Anyone can use the Costco Mortgage Program and receive the quoted rates.
  • Executive and Gold Star members get the additional perk of receiving capped lender fees — $350 is the cap for Executive level members and $650 is the cap for Gold Star members — which can save you money at closing.
  • You have the ability to lock one of the quoted rates before you enter the loan pre-approval process, and the lender has to honor this locked rate at the time of closing, as long as the borrower’s information is accurate.
  • Costco works closely with their approved lenders, making sure there are no pricing discrepancies so you don’t fall prey to predatory lending practices.
  • The entire mortgage loan process is automated on a mobile-enhanced website.


  • Although Costco caps the lender fees, borrowers are responsible for a number of fees at closing, including title fees, appraisal, tax services and escrow. 
  • The Costco Mortgage Program is strictly online; you can’t meed with a loan officer face-to-face and discuss your situation.
  • Costco doesn’t offer reverse mortgages. If you are shopping around for this service, you’ll need to find another mortgage broker or lender.
  • If you’re not a Costco member, you won’t be able to save on closing cost fees.
  • You can see the initial rates only for the most popular loan products (30- and 15-year fixed-rate mortgages). You’ll need to work with a loan officer to get more information.

The final word

The Costco Mortgage Program offers a broad range of loan products, including fixed-rate loans, ARMs, HELOCs and refinances. It only works with approved lenders, and it claims to make sure these lenders follow through with the terms they initially offer.  It can’t hurt to check these rates — whether or not you’re a Costco member — and Costco won’t run your credit. Plus, the results pop up in seconds, and because Costco caps the lender fees for members, you might end up with a lower interest rate using its Mortgage Program. The fact that it has a trustworthy reputation is just icing on the cake.


Is Costco good for mortgages?

Costco helps connect homebuyers with mortgages but it is not a mortgage provider. It works with several banks to provide mortgage offers to people who are looking for home loans, which enables them to shop around for the right deal.

The major mortgage benefit Costco offers is a cap on lending fees if you use their service to refinance or secure a mortgage. Executive members can expect to pay no more than $350 and Gold Star members no more than $650 in lender fees, which include application, commitment, underwriting, processing fees and other like fees.

Third-party fees are also applied and will depend on which bank you choose for your loan, but the caps on the lending fees can greatly reduce your closing costs. As of May 2020, Costco estimates that the average Executive member savings is about $7,398 in interest and fees over the course of the loan. For Gold Star members, that savings is estimated at about $7,098.

What are Costco refinance rates?

It’s nearly impossible to get specific refinance rates from Costco because it’s not a direct lender. The interest rates on mortgages offered through Costco’s mortgage program depend on a number of factors. You will enter information about your credit score, property value, mortgage balance, whether you want money out of your refinance and other information about what you’re looking for in a new loan.

That information is then sent to Costco’s partner banks and you will be provided with a list of offers with interest rates. You can compare the rates and terms of each offer and choose whether or not the rates are acceptable for your needs. Because market conditions are variable and continually changing, Costco doesn’t guarantee that the rates you’re offered are the best available or the final rates for your mortgage.

Is Costco a direct lender?

Costco is not a direct lender. It works in partnership with NASB Home Loans, CrossCountry Mortgage,, Consumer Direct Mortgage, Mutual of Omaha, NBKC Bank and Strong Home Mortgage to help members secure a new mortgage or refinance an existing loan.

Valerie Fulton

Valerie Fulton is a freelance writer who specializes in personal finance, real estate, higher education, home improvement, and business copy. Her work has been published at Veros Real Estate Solutions, Bluehost, Sears, UPS, Movoto, the Simple Dollar, Peak Communications, and the University of Tennessee. Every summer, she travels from Austin, Texas to the coast of Maine with her two standard poodles in order to manage the vacation property she bought for a steal several years ago.