Lower Mortgage Review 2023

Pros and cons

Lower overview

Lower is an online-only mortgage lender with hubs in New Albany, Ohio and Columbia, Maryland. In addition to offering mortgages, the lender offers homebuyers help with saving for a down payment and securing homeowners insurance. The lender preapproves qualified borrowers typically within one business day of applying, issues a conditional approval in seven days and closes purchases in an average of 22 days. Lower also offers prequalifications. Notably, existing borrowers qualify for the “Free Refi For Life” program, which waives the lender and application fees, and the lender allows you to earn rewards of more than $1,000 toward the down payment using the Lower app.

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Lower is good for

Borrowers looking to maximize their down payment savings and a fast closing timeline

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Breakdown of Lower overall score

• Affordability: Lower’s rates are slightly higher than Bankrate’s averages, but its fees are consistent regardless of loan amount.
• Availability: Lower is available to borrowers in the majority of states (one notable exception being New York), and it offers a range of purchase, refinance and home equity options.
• Borrower experience: Lower has very high marks from the Better Business Bureau and customers on Bankrate. Another standout: Its down payment savings app.

Methodology

To determine a mortgage lender’s Bankrate Score, Bankrate’s editorial team rates lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews. Here is our full methodology.

Affordability: 4/5

Lower’s rates aren’t as low as Bankrate’s averages, but the lender’s flat-fee structure could mean you save money even if you need a jumbo loan. For purchases, Lower charges a flat $995 fee, and for refinances, a flat $1,695 fee. One big perk: That refi fee is waived if you’re an existing borrower. The lender displays current rates on its website so you can easily make comparisons.

Lower also aims to help you save with its app, which features the option to put money (“HomeCash”) aside for your down payment in an FDIC-insured, interest-bearing account. You’ll be able to earn an additional $1 for every $1 you deposit, up to $500. You can only apply these funds to a home purchase mortgage through Lower, however, and you can’t put them toward the purchase until they’ve seasoned for one year (after your first deposit).

Availability: 4.3/5

Lower’s mortgage options include conventional and government-insured loans (FHA, VA and USDA), along with home equity products and refinancing. If you need a bigger loan for a pricier home, the lender also offers jumbo mortgages and investment property loans.

Note, though: Lower isn’t licensed to lend in every state. Be sure to check availability before requesting a preapproval from this lender.

Borrower experience: 4.6/5

Lower boasts $23 billion in loan volume and has an A+ grade from the Better Business Bureau, although it isn’t accredited by the organization. Thousands of borrowers have had positive experiences with this lender, according to Bankrate, BBB and Trustpilot testimonials.

If you’re interested in a mortgage through Lower, you can apply for a loan via its website, and often e-sign documents for added convenience. The lender offers customer support by email and phone, with business hours from Monday to Friday, 8:30 a.m. to 6 p.m. ET. Its website has various educational and planning tools, as well.

Refinancing with Lower

Lower offers mortgage refinances for a flat fee of $1,695, although that cost is waived for existing borrowers. Refi candidates can apply online.

Alternatives to Lower

• Chase Home Lending review – For a brick-and-mortar option
• Mr. Cooper review – For more niche loan products
• Rocket Mortgage review – One of the largest online lenders