Costco now offering mortgage loans

(Associated Press)

(Associated Press)

How about a Costco mortgage to go with that 30-count package of three-ply toilet tissue rolls or that 35-count shrink-wrapped package of ready-made green tea?

The wholesale membership club competitor has entered the full-service mortgage loan business, and it’s already issued more than 10,000 loans, according to a CNN Money report. The loans include traditional mortgages, refinancing and loans for veterans.

Costco has teamed up with First Choice Bank to give members access to lenders with competitive loan terms through an online portal.

Members plug in their mortgage request information and the site provides a list of possible lenders. The member then decides which lender to pursue, instead of lender after lender contacting the Costco member. The lender doesn’t get the member’s identity until after it is chosen.

Costco also eventually plans to offer health and auto insurance, and student loans, the report says. The warehouse retailer already offers recreational vehicle and boat loans.

Costo’s main competitor, Sam’s Club, offers small business loans of $5,000 to $25,000 through an alliance with Superior Financial Group.

6 comments Add your comment

dealme

April 28th, 2012
2:19 pm

will costco foreclose if I’m late on my mortgage payment?

Kelly Brown

April 28th, 2012
9:25 pm

18 comments above this. I have no idea what they are, nor do I care. Just another example of a clumsy attempt to appear contemporary.

[...] Atlanta Journal Constitution (blog) [...]

[...] News Sources wrote an interesting post today onHere’s a quick excerpt [...]

metcal

April 30th, 2012
6:55 am

what is the interest rate?

PM

April 30th, 2012
8:51 pm

For at least the past several years, Costco has offered home and auto insurance via a connection to Ameriprise insurance. I looked into it but the prices weren’t that much better than I can get on the open market and they’d only commit to a six-month policy term, whereas my current carrier gives me a year at a time. Not interested in having to deal with renewals twice as often.

The problem with using a warehouse club for long-term financial things is that the warehouse clubs are fickle and may ditch the provider company for somebody else. So you get Ameriprise insurance now and Costco switches to Geico in a year, or worse, you get a mortgage now that runs for 30 years but Costco splits out in 15 years and goes with BofA. Then what? Does your relationship with the lender go sour because they no longer have anything to do with Costco? Does Ameriprise drop your policy or just erase any Costco discounts?

I’d rather not complicate my finances with third-party stuff like this.