Lower Reviews
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About Lower
Lower (NMLS #1124061) is an online mortgage lending company providing options for buying, selling, insuring and saving for a home. The company’s home purchase options include conventional, FHA, VA, USDA and jumbo loans. It also offers refinancing, including rate-and-term and cash-out loans. You can get pre-qualified without a hard credit check. Lower is available in 44 states and Washington, D.C.
Pros & Cons
Pros
- Pre-qualify without a hard credit check
- Publishes fees online
- No refinance lender fees after initial loan
- Support available via text
Cons
- Not licensed in all states
- No physical branches
Bottom Line
Lower offers home purchase and refinance loans, as well as home equity lines of credit. It’s available in most states, and you can apply and pre-qualify online without a hard credit pull. Lower publishes some rate info on its site.
Featured Reviews
Wonderful experience working with Lower and Jacob ** throughout my refinance process. Super easy communication and support along the way! Jacob was always a quick text away with t...
Read full reviewI would absolutely recommend Lower.com for anyone looking to refinance.. … The process was quick and easy. Liam made sure that I understood the entire process and was always avail...
Read full reviewRates
Lower publishes rates for 15- and 30-year fixed-rate conventional loans on its website daily. Both rates are for loans of $200,001 with a 75% loan-to-value (LTV) ratio.
For rates based on your individual situation, contact Lower Mortgage for a customized quote. When comparing rates, make sure to note the difference between interest rate and annual percentage rate (APR) — both represent costs of borrowing, but the APR includes interest plus fees.
Lower offers both fixed-rate and adjustable-rate mortgages (ARMs). As mortgage rates rise, many borrowers are interested in ARMs because they typically start with a lower fixed rate than conventional mortgages. You might consider an ARM if you plan to sell your home or refinance your loan before this period ends and the rate resets.
In recent years, Lower’s average home purchase rates have remained pretty close to the national average. In 2021, its average for this type of mortgage was 0.04% higher than the average in the U.S.
Lower average home purchase rate vs. national average
Year | Difference from national average |
---|---|
2021 | +0.04% |
2020 | -0.02% |
2019 | +0.18% |
Application process
Lower Mortgage offers an online application. You can begin the pre-qualification process by responding to a few short questions and authorizing a soft credit check that won’t affect your credit score. Loan advisors are available by phone or text to answer your questions about the application process.
After you get pre-qualified, the next step is preapproval. You’ll need to upload financial documentation (like W-2s and bank statements) to Lower Mortgage’s online loan portal at this point. Once Lower has all your documents, you can expect to receive a preapproval letter within one business day.
Lower application features
Features | Availability |
---|---|
Online application | |
Mobile document upload | |
Physical branches | X |
Publishes minimum rate on website | |
Rate lock | 15 to 360 days |
Pre-qualification (no hard credit pull) | |
Certified approval letter |
Loan types
Lower offers a variety of mortgage products, including conventional loans, jumbo loans, FHA loans, USDA loans, VA loans and combo loans. You can also refinance your home loan with Lower, whether you’re aiming to cash out or change your rate or term. Lower finances loans for first and second homes and investment properties with term lengths of 10, 15, 20, 25 and 30 years.
In 2021, Lower received 15,937 home purchase applications. It opened loans for 11,140 (about 70%) of these and denied 1,361 (about 9%).
Loan applications for home purchases only by year
2021 | 2020 | 2019 | |
---|---|---|---|
Home purchase applications | 15,937 | 9,483 | 5,851 |
Home purchase loans closed | 11,140 | 7,205 | 4,562 |
Home purchase applications denied | 1,361 | 757 | 532 |
Home purchase preapprovals denied | 0 | 0 | 0 |
Refinancing
A majority of the mortgages Lower Mortgage financed in 2021 were refinances (38.33%) and cash-out refinances (24.03%) rather than home purchase loans (37.65%).
In 2021, 35.73% of reported mortgage loans in the U.S. were home purchase loans; 37.89% were used for refinancing, and 19.89% were for cash-out refinancing, according to Home Mortgage Disclosure Act (HMDA) data.
Home purchase vs. refinance loans by year
2021 | 2020 | 2019 | |
---|---|---|---|
Home purchase loans | 37.65% | 35.99% | 47.98% |
Refinance loans | 38.33% | 49.03% | 30.4% |
Cash-out refinance | 24.03% | 14.98% | 21.62% |
HELOC and home equity loans
If you’re already a homeowner and interested in cashing in on your equity in the property, you might consider a home equity line of credit (HELOC) from Lower. It allows you to borrow up to 95% of your home equity (up to $350,000). Lower doesn’t offer home equity loans.
Requirements
Lower requires a 620 credit score for a conventional loan; FHA loans require a credit score of at least 500. Jumbo loans require higher credit scores — at least 680.
The down payment you’ll need also depends on the type of loan. A conventional loan often requires at least a 3% down payment, while an FHA loan requires a 3.5% down payment. VA and USDA loans don’t require a down payment.
Lower generally looks for a debt-to-income (DTI) ratio of 36% or lower for conventional loans and 43% or below for FHA loans.
National mortgage requirements by type
Min. credit score | Min. down payment | Compare with other lenders | |
---|---|---|---|
Conventional | Typically 620 | Typically 3% | Mortgage lenders |
FHA | 500 | 3.5% with 580 credit score | FHA lenders |
VA | Set by lender (often 580) | 0% | VA lenders |
USDA | Set by lender (often 640) | 0% | USDA lenders |
Cost and fees
Origination fees and closing costs vary with Lower Mortgage, ranging from $0 to 3% of the loan amount. Lower lists the following possible fees with its loans:
- Application fee
- Appraisal fee
- Credit report fee
- Discount points
- Escrow deposit for property taxes
- Flood certification fee
- Homeowners insurance
- Pest inspection
- Processing fee
- Recording fees
- Survey fee
- Title search fee
- Transfer taxes
- Underwriting fee
One feature of note from Lower is its “Free Refi for Life.” Once you get a purchase or refinance loan from Lower, it covers lender fees on all future refinances with the company. Lower says you can expect to save $1,500 on each future refinance loan.
FAQ
How does Lower work?
If you’re looking to purchase a home or refinance an existing loan, start with the Lower pre-qualification process. The questionnaire asks for some general information, including your credit score, how much you want to spend on a home, your down payment amount and income info. If you want to refinance, Lower asks about your goals (e.g., lowering your interest rate, getting cash out) and details about your current loan.
Lower can then give you an idea of what you qualify for after a soft credit pull. Once you’re ready to purchase or refinance with Lower, the lender does a hard credit check.
The entire application process can be done on Lower’s website or mobile app. This includes uploading documents. If you have any questions during the process, there are loan advisors available to help by phone and chat.
Is Lower legit?
We like that Lower has a variety of loan options and publishes rates on its website. You can contact the company by phone or text to get help from a loan advisor. If you’re researching lenders for buying a home or refinancing your current mortgage, add Lower to your list and compare it with other companies to find the best offer.
Where is Lower available?
Lower is available in 44 states and Washington, D.C. Lower is not available or licensed in Alaska, Hawaii, Nevada, New York, Rhode Island or Vermont at the time of publishing.
Lower Reviews
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Reviewed June 28, 2023
Working with Lower wasn't excellent, but it was good. The initial person that got everything together for underwriting was great. When I ran into concerns or I had questions, she would either email or reach out by phone. If I wasn't available by phone, she would email me. It was pretty fast. There was a consultant and he got all of my information and got me approved, and then it was sent to someone else to confirm everything. She was my last point of contact.
The total lending process took three weeks. Initially, I had to upload some documents. Whenever it was sent to underwriting, some of those documents got lost or they were not transferred over. So, I had to re-upload them and they had to figure out which ones they were missing. That took about a week. I used them in the past and the first time, that did not happen with them. It was a lot smoother. Lower could have an online database for my stuff so if they needed something or if I had submitted something, then they could have just sent everything. It would all be in that one spot and I wouldn't have had to redo it.
Lower reached out to the closing attorney and they also reached out to my real estate agent because there were some problems. This time, the seller was giving some money towards repairs and I wasn't informed that Lower only would allow so much money to be put towards closing. So, the rest of it had to be put in escrow and I had to prove that I did those repairs. It wasn't convenient for me, but the Lower team did work and they worked overtime to get that done and to have closing set for a certain day. I would recommend Lower. They were very personable. They got the job done. They stayed in communication, in contact with me, constantly throughout the process so I always knew what was going on, and with the closing attorney and with the real estate agent. We all stayed on the same page and knew what was happening.
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Reviewed June 26, 2023
When I talked with the broker, he was very informative. He gave a breakdown of everything. He was very open and forthcoming. He even told us what would be a good idea and what would not be. He asked quite a few questions, but the questions that were asked were to make sure that we knew what we were getting into and our income, making sure we would be able to afford being locked into a loan. He went above and beyond with the application to the benefit of the applicant. When he did the credit pull, he mentioned some things that would help us get our credit up and suggested later on if we wanted to do a refinance to bring our APR down. But our APR is not bad at all. It is very fair based on our credit. Any question I had, it didn't matter what the hour was. I could ask it and they had an answer for me right away.
The only thing that was an annoyance which was of no fault of anyone was when they do that check then someone would come back with the same name as mine and they had a lien. I had to prove it was not me but it was easy to do so. I would definitely go through Lower again. I'm so excited. They had lifted my spirits and I am grateful.
Reviewed June 26, 2023
I was more comfortable speaking with Lower, and their process was seamless. I was a little stressed out trying to get some stuff handled 'cause it was such a big commitment but overall, Chad, my associate for Lower, made the process simple. He was able to lock me into a rate that was lower than what everybody else was having to deal with. He answered a lot of my questions. He responded to my text messages at midnight sometimes when I was trying to get things done.
It would have been easier if I could have done the process through my phone like I wanted to, but for the type of documents they were asking for, you had to have it a certain way. It was easier to screenshot on my phone and press send than trying to get to somebody's laptop and do the same process. Also, I wish a few more things were communicated a little better, especially towards the end. They kept asking for things I had already sent or they had told me I was done then would ask for something else. Additionally, I don't like that two weeks after I closed, they had already given me to another company. I got a call which I thought was a scam. I had to message my lender to ask what was going on and they told me I was transferred.
Reviewed June 25, 2023
A few minutes after looking at Zillow, Lower gave me a call. They weren't pushy. And they knew I was just shopping around. They would respond within 20 minutes for whatever I asked, and respond on a weekend. It was over the top. The rep was on point. He checked in with me every other day just to make sure I didn't have any questions. He was very patient. I didn't feel stupid asking him anything. I never bought a house before. They explained every single line of, “This is the interest rate. This is how it works. This is what's next.” They even referred me to somebody to get a home insurance quote, too. They made it super convenient. And the approval process went fast. It was less than a month before we were closed.
Clearly, the rep has done a zillion of these, because he knew what a first time homeowner would ask. So preemptively, he said, “You're gonna wonder about this, and you're gonna wonder about this, and here's this. And this is the next five steps. And this is how it's supposed to look.” I felt safe through the whole thing. It's a spooky, big amount of money that you owe when you buy a house. I was scared when it was 200,000. I'm sure I'm scared of it now.
Everything was electronic and quick. Everybody warned me it would be a miserable process through some horrible things. There were some questions, and one of the people in underwriting went on vacation when his wife had a baby, so he had to go. But they filled in the next person right away. I highly recommend them. They made it easy. It was like, “Are you serious? Shouldn't I struggle a little more in this?” Eventually, I wanna refi because home mortgage prices are so high right now. I've never had customer service like that.
Reviewed May 2, 2023
Lower wasn't on my radar when I was looking for a home. I already had a pre-qualification from another loan officer and it ended up that the house that we shortlisted was through Opendoor. They’re affiliates, which is why Lower could offer me a good deal and I went with them. It took not even an hour or two to get pre-qualified. It happened quickly and then, I ended up putting down that offer with the pre-qualification and it got accepted. It went through and the closing time was 21 days. We could have done a few more days earlier, but we had to wait for the closing date. Everything else was done.
The reps were helpful and communicative. They were always letting me know what was happening and any time I had any questions, Dane, one of the reps, talked to me. He was fantastic. I couldn't have asked for anything more than just be available for my questions and he responded within a few minutes. The rate was reasonable and lower than the best one I had gotten. But other than that, everything else was a fixed 30-year which I was looking for so that was good. The interest rate was what eventually sealed the deal. I like that Lower has an easy-to-use website too. So, I have never had issues with anything I needed. Everything was available online. I would recommend Lower because my experience has been easy and painless. I've recommended that to some of my friends.
Reviewed Sept. 3, 2023
My broker, Carter, was so nice for over a year and kept on checking in. When I finally moved, he was super quick and the process was very fast. It was great because I was able to text him. If I had something more dramatic, I could text him and we would have a phone call really quickly. He had a lot of great explanations for basic stuff I didn't know.
Reviewed Sept. 3, 2023
Everything that I used, including uploading my own documents, was seamless. Everything was done super efficiently. Whenever I had questions, my loan officer got them answered for me. They were the primary reason we were able to get everything closed so quickly. From start to finish, it took somewhere around 26 to 27 days. It wasn't necessarily on Lower that it took a little bit longer though. The part that they had to get done was done very quickly. But we had to have a second appraisal, and then the seller also had to repair things that were broken. So, that was what took the longest time.
Reviewed Sept. 2, 2023
Katie, Lower’s loan officer, had everything all fixed and ready to go for us by the time I was ready to do the mortgage. I was very impressed. She was great. She helped us with everything we needed to get as far as documents. If we didn't understand something, she was right there. She knew exactly what she was talking about and what she was doing. The application process was shorter than I thought it was gonna be. It was very quick and I was pleased. I hear about people not closing on their houses for four months and it took me a month and some change. You can’t get much better than that. And the rate and terms were fair, in today’s economy.
Reviewed Sept. 2, 2023
My experience with Lower was awesome, very easy and quick. They were very responsive and good. The rep made it seamless. I was very impressed how easy it was. I thought it'd be a lot more hoops. I also know where rates are and they were competitive. I'd recommend them to anybody.
Reviewed Sept. 2, 2023
The process at Lower was quite easy. I sent all my information in, my previous tax returns, my income statements and my asset sheets. Riley, the rep, did everything else for me in terms of handling the mortgage, a company that they were working through for whatever external business they work with. He would just tell me if they needed anything else. I'd just send it right to him or write to whoever needed it. And the process was done in seven days. The rate was also a lot better than I thought it was gonna be, ‘cause I know rates nowadays are quite high. Lower.com's website was also easy to navigate.
Sources
- Federal Financial Institutions Examination Council, “ HMDA Dataset Filtering .” Accessed Aug. 25, 2022.
Lower Company Information
- Company Name:
- Lower
- Company Type:
- Private
- Address:
- 8131 Smith's Mill Rd
- City:
- New Albany
- State/Province:
- OH
- Postal Code:
- 43054
- Country:
- United States
- Website:
- www.lower.com