If you’re in the market for a mortgage, you’ve probably come across two of the biggest names in online mortgage lending: Mr. Cooper and Rocket Mortgage. But which one should you choose for your home loan?
In this comprehensive guide, we’ll compare the pros and cons of Mr. Cooper and Rocket Mortgage to help you make the best decision.
A Brief Comparison Table
| Feature | Mr. Cooper | Rocket Mortgage |
| Interest Rates | Competitive rates | Competitive rates |
| Origination Fees | 0-1% of loan amount | 1-1.5% of loan amount |
| Loan Types | Conforming, government loans. VA/FHA specialty | Conforming, jumbos, government loans |
| Minimum Credit Score | 600 | 580 |
| Down Payment Required | 5% on conforming loans | 3% on conforming loans |
| Loan Process | Slower manual underwriting | Faster tech-driven underwriting |
| Customer Service | Mixed reviews, but dedicated loan officers | Highly rated but dispersed support |
| Closing Timeframe | Can take longer with underwriting | As quick as 8 days |
| Best For | Personal guidance, govt loans | Fast, seamless digital experience |
Overview Of Mr. Cooper And Rocket Mortgage
First, let’s look at brief overviews of each lender:
Mr. Cooper
- One of the largest mortgage servicers in the US
- Offers conforming and government-backed mortgages
- Online loan application and digital tools for managing your mortgage
- Access to local mortgage experts if needed
- Originated by Nationstar Mortgage Holdings Inc. in 2018
Rocket Mortgage
- America’s largest mortgage lender
- Offers a wide variety of mortgage products
- Fully online mortgage process
- Known for speed and simplicity through their online platform
- Originated by Quicken Loans in 2015
Both lenders provide an easy way to apply for and manage a mortgage completely online. But they have some key differences when it comes to their specific loan offerings, technology, and customer service.
Also Read: Choose Between AmeriSave Mortgage And New American Funding.
Mortgage Rates And Fees
One of the most important factors when choosing a mortgage lender is the interest rate and fees they offer. Here’s how Mr. Cooper and Rocket Mortgage compare:
Interest rates
- Rates are very similar between the two lenders
- Both offer competitive rates for well-qualified borrowers
- Slight fluctuations day to day, but overall on par with each other
Origination fees
- Mr. Cooper has origination fees from 0% to 1% of the loan amount
- Rocket Mortgage origination fees range from 1% to 1.5%
- Can add thousands to your total closing costs
Closing costs
- Average closing costs for both lenders fall between 2-5% of loan amount
- Rocket Mortgage tends to have slightly higher fees
- Mr. Cooper offers discounts for existing customers
Lender credits
- Mr. Cooper provides lender credits more often
- Can offset origination/closing costs
- Rocket Mortgage credits less common
Rate locks
- Both lenders offer free rate locks for 30-90 days
- Locks your interest rate during home buying process
Overall, interest rates will be very similar between the two lenders. But Mr. Cooper tends to offer lower origination fees and more frequent lender credits, which can save you money on closing costs.
Loan Products And Qualifications
Mr. Cooper and Rocket Mortgage also differ when it comes to the types of mortgage loans they offer and borrower eligibility requirements:
Loan types
- Both offer a full range of conforming and government loans
- Including fixed & adjustable rate, FHA, VA, USDA
- Rocket has more jumbo loan options for high-value homes
- Mr. Cooper specializes in VA and FHA loans
Credit score requirements
- Minimum scores are 580 for Rocket, 600 for Mr. Cooper
- But both require good credit for best rates/approval odds
- Guidelines loosened during pandemic but tightening again
Down payment requirements
- Rocket requires 3% down for conforming loans
- Mr. Cooper asks for 5% down on conforming
- Lower down payments possible with government loans
Debt-to-income ratios
- Maximum DTI of 50% for both lenders
- Stricter income documentation for higher DTI ratios
First-time homebuyer programs
- Rocket Mortgage has specific programs for first-timers
- Down payment assistance and homebuyer education
- Mr. Cooper less focused on first-time buyers
Rocket Mortgage offers more flexible qualification guidelines overall. But Mr. Cooper may be a better fit if you specifically want a government-backed loan like FHA or VA.
The Mortgage Process
Mr. Cooper and Rocket Mortgage also take slightly different approaches when it comes to the mortgage application and approval process:
Application process
- Both have online applications that can be completed in minutes
- Rocket touts an easier, faster application experience
- Mr. Cooper may require more upfront documentation
Underwriting and approval
- Rocket uses a proprietary tech platform for faster underwriting
- Automated verification and decisioning based on your data
- Mr. Cooper has more manual underwriting
- May take a few days longer for approval
Ease of process for borrowers
- Rocket Mortgage is known for client-friendly, low friction process
- Goal is to make homebuying and financing easy
- Mr. Cooper not quite as seamless but still decent online experience
Closing times
- Rocket Mortgage clients can close in as little as 8 days
- Average closer to 21 days for both lenders
- Mr. Cooper closings may take longer with manual underwriting
The bottom line is Rocket Mortgage aims to provide lightning-fast approvals through technology automation. Mr. Cooper offers a smoother process than traditional lenders, though not quite as streamlined as Rocket.
Customer Support
What about when you need mortgage help or have questions? Here’s how Mr. Cooper and Rocket Mortgage stack up for customer service:
Communication channels
- Both offer phone, email, mail, and online account support
- Live chat available with Rocket Mortgage
- Mr. Cooper has more local branches for in-person help
Customer service reputation
- Rocket has higher ratings for timely, knowledgeable assistance
- Complaints of long hold times with Mr. Cooper phone support
- But wide range of experiences with both lenders
Loan officer access
- Rocket provides an online loan team but no single point of contact
- Mr. Cooper assigns a dedicated loan officer
- Helpful for guidance throughout the process
Customer resources
- Extensive FAQs and video libraries on both lenders’ sites
- Rocket Mortgage also provides multiple mortgage calculators
- Useful tools for comparison shopping
Having access to knowledgeable mortgage professionals can simplify the loan process. In this regard, Mr. Cooper’s direct loan officer access gives them an edge over Rocket’s dispersed support model. But Rocket makes up for it with faster and more positive customer service experiences overall.
Also Read: Choose Between AmeriSave And Rocket Mortgage.
Frequently Asked Questions (FAQ)
No, Rocket Mortgage and Mr. Cooper are completely separate mortgage lending companies and competitors within the industry. Rocket Mortgage was founded by Quicken Loans, while Mr. Cooper was originally Nationstar Mortgage.
Mr. Cooper is generally considered one of the better mortgage lenders, known for competitive rates and a smoother online process than traditional banks. They specialize in VA, FHA, and government-backed loans. However, customer service reviews are mixed.
Mr. Cooper is viewed as one of Rocket Mortgage’s biggest competitors, along with loanDepot, Fairway Independent Mortgage, and Guaranteed Rate. These large online lenders all compete for mortgage market share.
Some potential downsides of Rocket Mortgage include:
Slightly higher origination fees than competitors like Mr. Cooper
Lack of single point of contact – dispersed support model instead
Complaints of repetitive sales calls/contacts after initial inquiry
Not a great fit for more complex loans requiring specialized expertise
But their technogy, efficiency and service still attract many borrowers looking for a fast and streamlined mortgage process.
Also watch the video!
The Verdict
At the end of the day, here are a few key considerations as you choose between these two mortgage giants:
- Rocket Mortgage is ideal if you want a super fast, easy home buying experience. Their focus on technology and service makes financing seamless.
- Mr. Cooper is a better option if you need more guidance and hand-holding or specific government-backed loans. Their local teams and VA/FHA expertise brings more of a human touch.
- Shop around and get quotes from both lenders. Small differences in rates or fees can make one more affordable.
- Look at actual customer reviews to see real experiences with these lenders.
- Think about the type of mortgage process you want. Do you value speed and tech-driven service or personalized attention more?
While Rocket Mortgage and Mr. Cooper take slightly different approaches, they both provide a modern, efficient home financing experience. Do your research to decide which lender’s strengths best fit your mortgage needs and preferences.