Money Minute: Cut-rate mortgages for sale at Costco [Video]
A case of tuna fish ... and a case of toilet paper ... and a home loan? Since when has Costco been in the mortgage business?
Since last year, it turns out. That’s when the Issaquah, Wash.-based discount giant began experimenting with offering home loans to some members via its website.
Costco is so pleased with how things turned out that it’s rolling out the service to everyone. Auto and student loans will follow soon.
It makes sense. Costco has very loyal customers, and they’re interested in financial services. In theory, the same volumes that allow the company to discount heavily on TVs and snacks will allow it to offer similar deals on loans.
Basically you go to Costco’s site and enter the required information. Quotes are then offered by various lenders. Best of all, closing costs will likely be lower than what you’ll find at a traditional bank.
Here’s my question: If you buy a case of peanut butter or some other commodity, can you shave a point or two off your mortgage? Just a thought.
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