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Lower Mortgage Review 2024

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At a glance

Lower
NMLS: 1124061
Editor's take

Lower, a stamp of Homeside Financial, aims to deliver on its namesake: lower mortgage rates. Along with a variety of loan options, the lender offers other ways to save, including a down payment savings match and a waived refinance fee for return customers. It now offers home equity lines of credit, too, so you can leverage your equity as you need it.

Bankrate Score
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3.9
Rating: 3.9 stars out of 5
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Bankrate Score

Customer Rating
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5.0
Rating: 4.96 stars out of 5

3,144 ratings

Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, USDA, refinancing and more

Credit Good

Min. credit score required

620 for conventional loans, 580 for FHA loans, 580 for VA loans

Location

Nationwide availability

All U.S. states except Alaska, Hawaii, New York, Rhode Island and Vermont

Dollar Coin

Min. down payment

3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans

At a glance

Lower

NMLS: 1124061

3.9

Rating: 3.9 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, USDA, refinancing and more

Location

Nationwide Availability

All U.S. states except Alaska, Hawaii, New York, Rhode Island and Vermont

Credit Good

Min. credit score required

620 for conventional loans, 580 for FHA loans, 580 for VA loans

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. It also offers prequalifications.

Pros and cons of Lower

Pros
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    Fully online process

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    App designed to help borrowers save for their down payment

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    No lender fees on refis for existing borrowers

Cons
  • Close X

    High fees for new borrower transactions

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    Not available in all states

Our Editor’s Take on Lower

Lower, a stamp of Homeside Financial, aims to deliver on its namesake: lower mortgage rates. Along with a variety of loan options, the lender offers other ways to save, including a down payment savings match and a waived refinance fee for return customers. It now offers home equity lines of credit, too, so you can leverage your equity as you need it.

How Bankrate scored Lower

  • Affordability: Lower’s rates are typically slightly higher than Bankrate’s averages (as of this review), 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.

Affordability: 6.6/10

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: 9.2/10

Lower’s mortgage options include conventional and government-backed 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: 7.8/10

Lower 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. Its website has various educational and planning tools, as well.

How to apply for a mortgage with Lower

You can apply for a mortgage with Lower online or by phone at 888-509-8301. 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. Here are some tips to prepare for the process:

  1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
  2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
  3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with Lower

Lower offers both rate-and-term and cash-out refinancing options.The lender charges a flat refi fee of $1,695, although that cost is waived for existing borrowers.

Frequently asked questions about Lower

What discounts does Lower.com offer?

By saving for a home in the Lower app, you can earn more than $1,000 in rewards toward closing costs. (User reviews of the app are mixed, however.) Lower matches each dollar saved up to $500, and the lender also offers rewards for setting up a recurring deposit and referring friends and family.

What is Free Refi for Life?

Lower borrowers qualify for the “Free Refi For Life” program, which waives the lender’s fees when you refinance.

Compare Lower to other lenders

Lower
Rating: 3.9 stars out of 5
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3.9

Bankrate Score
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Bethpage Federal Credit Union
Rating: 4.9 stars out of 5
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4.9

Bankrate Score
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Read full review
First Mortgage Direct
Rating: 4.8 stars out of 5
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4.8

Bankrate Score
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Read full review

Loans offered

Conventional, jumbo, FHA, VA, USDA, refinancing and more

Loans offered

Conventional, jumbo, FHA, refinancing and more

Loans offered

Conventional, jumbo, FHA, VA, USDA, refinancing and more

Min. credit score required

620 for conventional loans, 580 for FHA loans, 580 for VA loans

Min. credit score required

620 for conventional loans, 500 for FHA loans

Min. credit score required

620 for conventional loans, 580 for FHA loans, 580 for VA loans

Down payment

3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans

Down payment

3% for conventional loans, 3.5% for FHA loans

Down payment

3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans

Nationwide availability

All U.S. states except Alaska, Hawaii, New York, Rhode Island and Vermont

Nationwide availability

Available in all U.S. states except Texas

Nationwide availability

All U.S. states

Lower customer ratings and reviews

logo

NMLS: 1124061

5.0

Rating: 4.96 stars out of 5

3,144 ratings

Info

This lender has 3 recent reviews.

Knowledge
Rating: 5 stars out of 5
Level of service
Rating: 5 stars out of 5
Professionalism
Rating: 5 stars out of 5
Responsiveness
Rating: 5 stars out of 5
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98%
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99% of customers would recommend this lender.

of 3 reviews

The consumer reviews posted on Bankrate.com ("Bankrate") are individual, subjective opinions of reviewers, and not of Bankrate. Bankrate does not endorse any of the opinions expressed by reviewers or any responses to reviews.

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