Did Costco Discontinue Its Mortgage Program?

Did Costco discontinue its mortgage program?

Yes. The Costco home-financing program ended on May 1, 2022, according to HousingWire's 2022 report.

The distinction matters: Costco did not directly originate the mortgages. It connected members with affiliated lenders. HousingWire reported that the closure notice listed CrossCountry Mortgage, Box Home Loans, Lending.com, Mutual of Omaha Mortgage, NASB, NBKC Bank, Real Genius, and Strong Home Mortgage, while CrossCountry had run the program after acquiring First Choice Loan Services in 2020.

That means the old offer was a shopping channel, not a Costco loan product. Do not spend time looking for a hidden enrollment page or assuming an old program page still sets pricing. Move straight to current written offers.

Can Costco members still get a mortgage discount?

No Costco member mortgage discount is established by the public sources provided for this guide. The program that connected members to affiliated lenders ended in 2022, according to HousingWire.

A low fee label is not the same thing as a low-cost loan. The Consumer Financial Protection Bureau's 2024 Loan Estimate guidance says to compare the same loan amount and loan type, then look at the interest rate, monthly payment, mortgage insurance, upfront loan costs, lender credits, and cash to close.

Use a clean request when gathering offers: “Please price the same loan amount and loan type, with the same points or lender-credit choice, and send a Loan Estimate.” That removes the most common comparison failure: comparing different products as though they were the same product.

APR can be a useful summary figure, but it should not replace this line-by-line check. The CFPB's 2024 comparison framework is more operational: compare the actual price components and the cash requirement on matching Loan Estimates.

What happened to the Costco mortgage program?

Costco ended the program, and borrowers with an existing application or loan were directed to contact the lender they were already working with, according to HousingWire's 2022 reporting.

For a current shopper, that history answers one question and creates another. The answer: Costco is no longer the path to a member mortgage offer. The new question: how do you recreate the useful part of that path without assuming a branded program is the benchmark?

Build a small quote set across a bank, credit union, mortgage broker, and online lender. These are channels for obtaining offers, not a promise that one category will win. The discipline is to make every source price the same scenario, on the same day where possible, because the CFPB notes in 2024 that interest rates can change daily.

The Rate-Fee Tradeoff Drill

First, separate lender-controlled costs from costs that are not generally controlled by the lender. The CFPB says the primary lender-controlled upfront items are origination charges in Section A, certain services in Section B, and lender credits in Section J. Taxes, insurance, government fees, prepaids, and initial escrow can vary between estimates, but they are not the cleanest measure of lender pricing.

Second, align points and credits. According to the CFPB's 2023 explanation, discount points lower the interest rate in return for higher closing costs, while lender credits reduce closing costs in return for a higher interest rate. One point equals one percent of the loan amount, according to the CFPB in 2023. A quote with points cannot be fairly called cheaper than a no-points quote until that difference is visible.

Third, run the five-year test. The CFPB's 2024 method is direct: take the total paid shown in the Loan Estimate's “In 5 years” comparison and subtract the principal paid. The result is the interest and fees paid over that period. The agency says borrowers keep a mortgage for about five years on average before moving or refinancing, though an individual loan can remain active for a different length of time.

The shopping effort is not ceremonial. Freddie Mac reported in 2023 that borrowers in its comparable late-2022 sample who obtained at least four quotes could potentially save more than $1,200 annually; its analysis covered borrowers with FICO scores of at least 740, loan-to-value ratios from 75% to 80%, and loan amounts from $250,000 to $350,000. That is not a promise for every borrower. It is a strong reason to collect comparable quotes instead of accepting the first one.

Run this drill before choosing: place the Loan Estimates side by side, circle Section A, Section B, Section J, cash to close, and the five-year comparison. Then ask the lender one precise question: “What changes in this estimate if I choose zero points and zero lender credits?” Clear inputs produce a clear decision.