Lower: 2023 Home Equity Review
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At a glance
- Customer Experience
Min. credit score
5-year draw period and up to 20-year repayment period for HELOC; 15 years for home equity loan
Funds available in
Here's a breakdown of some of the benefits and drawbacks of Lower home equity loans.
Founded in 2018, Lower is a direct mortgage lender (also doing business as Homeside Financial) offering purchase mortgages, refinance loans, home equity loans and home equity lines of credit (HELOCs). It is headquartered in New Albany, Ohio.
|Home equity loan types||Home equity line of credit (HELOC)
Home equity loan
|Credit score minimum||700|
|Repayment terms||5-year draw period and up to 20-year repayment period for HELOC; 15 years for home equity loan|
|Average time to approval||17 days|
How Bankrate rates Lower
To create our Bankrate Scores, we evaluated lenders based on availability, affordability and customer experience. Availability was assessed based on the minimum loan amount required, time to approval, days to close, minimum draw requirements, minimum credit score requirements and loan types offered. Affordability was assessed based on minimum APR, discounts and promotions offered and associated fees. Customer experience was assessed based on online application and account availability, customer support, auto payment availability and mobile app availability and ratings.
- Lower provides both HELOCs and home equity loans, which might be appealing to a wider range of borrowers. Some lenders only offer one of these options.
- With a HELOC from Lower, you could tap up to 95 percent of your home’s value, significantly more than what many other lenders allow.
- Many lenders, especially banks, offer discounts for setting up autopay. Lower offers autopay, but not with a discount.
- If you tap your home equity through Lower, you’ll have to take out at least $15,000. This might be more than you’d like or need to borrow.
Types of fees charged
Lower charges an origination fee of 1 percent and a $495 application fee for home equity loans and HELOCs. There are no annual fees.
Home equity loan products offered
Lower’s home equity products include a fixed-rate home equity loan and a variable-rate HELOC. Both range in loan amounts from $15,000 to $350,000, with the maximum amount varying based on your location and your loan-to-value (LTV) ratio. Lower allows up to a 95 percent LTV ratio on HELOCs, which is more than most home equity lenders. (How much you can tap, however, depends on your credit and other factors.)
The HELOC has a five-year draw period and a repayment period anywhere from five years to 20 years. Lower’s home equity loan, meanwhile, has a 15-year term.
How to qualify for a home equity loan with Lower
To be eligible for either a HELOC or home equity loan from Lower, you’ll need a credit score of at least 700. The lender offers prequalifications, which means you can see if you’re eligible for a loan without a hard credit check.
How to get started
You can apply for a HELOC via Lower’s website. If you’re interested in a home equity loan, you’ll need to contact the lender directly by filling out a form online, calling 833-920-2273, emailing firstname.lastname@example.org or texting 855-293-1776. The customer service team is available Monday through Friday from 8:30 a.m. to 6 p.m. ET.