Lower: 2020 Home Equity Review

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Founded in December 2018 and headquartered in New Albany, Ohio, Lower offers mortgages, refinance loans and home equity lines of credit (HELOCs).

Borrowers can get up to $350,000 with a HELOC, with the potential of getting more than what other home equity lenders might offer.

Lower, which is named for its lower loan rates, uses artificial intelligence (AI) to analyze thousands of closed loans and peer data points to make sure you get the best possible loan terms. The lender offers quick approval and closing, as well as competitive APRs and minimal fees.

Lender snapshot

If you need a low-cost HELOC with a smooth application process and a lot of flexibility, Lower may be an excellent choice. Here are some highlights to know:

  • Offers HELOCs ranging from $15,000 to $300,000.
  • Requires a minimum FICO credit score of 620.
  • Allows a combined loan-to-value (CLTV) ratio of up to 95 percent.
  • Offers variable- and fixed-rate repayment terms.
  • The lender charges an origination fee of 1 percent and a $495 application fee.

Pros and cons

Lower provides a lot for consumers to like, but no lender is perfect. Here are benefits and drawbacks to know before you apply.


  • Competitive interest rates: As of November 2019, the average HELOC rate is 6.2 percent. With Lower, however, rates start as low as 4 percent APR. What’s more, you can choose between a fixed or variable interest rate, giving you more control over your future monthly payments.
  • Minimal fees: Lower charges a 1 percent origination fee and a $495 application fee. That said, consumers may need to cover the cost of an appraisal and title-related expenses. As a Lower customer, you’ll also get all future HELOCs and mortgage refinance loans without any lender fees.
  • Easy application process: Lower has a conversational online application (It starts with “Hey, what’s your name” and when asking for your phone number, they prompt you buy saying, “How about those digits”), which could make it easier for people who don’t often deal with home equity-related terms.


  • No home equity loan: If you would prefer a fixed-rate home equity loan over a revolving HELOC, you’ll need to work with a different lender.
  • No auto-payments: There isn’t a way to set up auto-payments directly with the lender.
  • Has a minimum draw requirement: Lower HELOCs have a $10,000 minimum draw requirement, so if you need a smaller amount, you’ll have to withdraw at least that much anyway, incurring more interest costs.

Mortgage products

In addition to a HELOC, Lower also offers home purchase and mortgage refinance loans. If you’re looking for a HELOC, though, it’s important to know the terms before you apply.

For starters, Lower offers loans of $15,000 to $350,000, with the maximum amount varying based on your state. Repayment terms range up to 30 years with variable terms and up to 20 years with fixed terms.

The minimum initial draw is $10,000 and the draw period is 10 years, during which you’ll make interest-only payments. After you submit an application, you’ll get an auto-approval within 24 hours. After that, a loan specialist will review your application by hand.

Lender fees

Lower charges an origination fee of 1 percent of your loan value and a $495 application fee. That said, you may still be on the hook for other fees that aren’t typically assessed by a lender, such as title-related costs and appraisal fees.

Because these fees can vary based on your situation and where you live, be sure to speak with the lender before accepting the loan to make sure you understand what costs you’ll be responsible for.

If you get approved for a Lower HELOC, you’ll pay no lender fees on future HELOCs and mortgage refinance loans for life.

Borrower requirements

Lower requires a minimum FICO credit score of 620, making it possible for people with fair credit to get approved for a loan. Current Lower customers, however, have credit scores of 680 and above, according to the company.

As for your debt-to-income ratio — your total monthly debt payments divided by your gross monthly income — the lender accepts a maximum of 50 percent.

How to apply

Lower’s application process can be completed entirely online. You’ll start by sharing your name, email address and phone number, after which you’ll get a call when a loan specialist gets your information.

However, if you want to continue with the application online you have that option. The application has a conversational feel to it, making it more engaging than a typical HELOC application.

If you choose to apply online, you’ll share some basic information about yourself and your home, and whether you have a co-signer.

Next, you’ll provide information about your income, assets and monthly expenses. Finally, you’ll input your Social Security number and agree to do a soft credit check to get an idea of what terms you might qualify for.

The entire application process takes seven to 10 minutes, according to Lower. You’ll typically get an auto-approval within 24 hours, and the average time to close on the loan is 21-25 days.

View home equity rates

Tap into the value you have in your home to get the funds you need.

Get started

If you’re interested in getting a HELOC from Lower, apply online through the lender’s website. If you have any questions along the way, you can reach out to Lower’s customer service team at care@lower.com or call them at (844) 645-6937.

The customer service team is available Monday through Friday from 9 a.m. to 6 p.m. Eastern time and Saturdays from 10 a.m. to 4 p.m.

How Bankrate rates Lower

Overall score 4.4
Availability 4.5
Affordability 4.4
Customer experience 4.4

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.