Costco no longer offers this benefit to members – Eat This Not That
Costco is known for having a warehouse stocked with anything and everything you could think of to fill a home. From 72 pounds of parmesan cheese to a saxophone starter kit, or even an emergency “just add water” meal kit with 110 servings – Costco has it all. However, the one thing it no longer offers is the house to put those things.
As of May 1, Costco no longer offers a mortgage program to its members, according to its website. The company asked all members in the process of getting a loan to contact the lender they were working with, eight of which were affiliated with Costco at the time: Box Home Loans, CrossCountry Mortgage, Lending.com, Mutual of Omaha Mortgage , NASB, NBKC Bank, Real Genius and Strong Home Mortgage.
Costco launched the mortgage program in 2020 and so far has offered no explanation as to why it ended. After the news broke, however, a Reddit member speculated that there was “probably not enough profit margin in referrals, with rates going up.”
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Costco itself was not a lender and had no direct role in the mortgage process. What the program offered was a cap on the lender’s fees associated with the loan transaction. Without the program cap, borrowers could expect to pay 1%, or $1,000 on a $100,000 mortgage. Lender origination fees at Costco have been capped at $250 for executive members and $550 for other members.
Some members are upset about the loss of service, which they cited as a major reason for joining the club.
“I used Costco for my refinance last year and was able to get 2% for 15 years and that too with 3-4k lender credit if I remember correctly,” a commenter posted on Reddit may’s beginning. “I probably won’t need to do it again, but it was a great addition to my existing subscription! My experience with the third party was also hassle-free.”
Although the warehouse chain no longer offers it, coincidentally Walmart announced the launch of its own mortgage loan program in early March. The supermarket giant has reached an agreement with Lenders One Cooperative to lease retail space in Walmart stores, where it will sell mortgage products and services. While the spaces are currently only active in three Walmart stores, the mortgage cooperative said it plans to expand to more stores.
But while Costco may not be able to finance your dream home, the warehouse still makes for a dream vacation.
Stay up to date with all the latest grocery news. Find out: Walmart just pulled this item from the shelves due to a quality issue.
Amber Lake is a staff writer at Eat This, Not That! and holds a journalism degree from UNF in Jacksonville, Florida. Read more