Lower Mortgage Review 2022

At a glance

4.8

Rating: 4.8 stars out of 5

Bankrate Score

Loans offered

Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; home equity line of credit (HELOC), home equity loan; investment property

Nationwide Availability

Available in 42 states and Washington, D.C. (not available in Alaska, Hawaii, Nevada, New York, Rhode Island, South Dakota, Vermont or Wyoming)

Min. credit score required

620 for conventional loans; 580 for FHA loans; 580 for VA loans

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, Lower allows borrowers to deposit savings toward a down payment and helps them secure homeowners insurance. Lower preapproves qualified borrowers typically within one business day of applying, and closings occur on average in 21 days. Lower also offers prequalifications. Notably, existing borrowers qualify for the “Free Refi For Life” program, which waives the lender and application fees, and allows you to earn up to $500 toward the down payment using the Lower app.

Good for

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

Loan types

• Conventional
• Jumbo
• FHA
• VA
• USDA
• Fixed-rate
• Adjustable-rate
• Rate-and-term, cash-out and streamline refinancing
• Home equity line of credit (HELOC)
• Home equity loan
• Investment property

Lender fees

For purchases, Lower charges a flat $995 fee, and for refinances, a flat $1,695 fee. One big perk: That $1,695 fee is waived for existing borrowers.

Rates

Lower publishes mortgage rates on its home page, and those are updated daily.

Reputation

Lower is not accredited by the Better Business Bureau, but has a C+ grade from the organization. On Trustpilot, Lower has a 4.9 out of five stars (or “Excellent” rating).

Online services

Borrowers interested in Lower can apply online, and the lender offers both preapproval and prequalification. Customer support is offered both by email and phone. Lower’s website has various education and planning tools, and its app is designed to assist borrowers with planning and saving for their mortgage. Lower also offers e-signature for documents.

Minimum borrower requirements

Lower follows Fannie Mae and Freddie Mac’s underwriting guidelines, so borrowers with credit scores of 620 or higher can put down as little as 3 percent on a conventional mortgage. Borrowers can have a maximum debt-to-income ratio (DTI) of 50 percent with certain loan products. Lower does not accept alternatives to traditional credit scores, like history of rent payment.

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.

Not sure if Lower is right for you? Consider these alternatives

• 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
• Costco Mortgage review: For Costco members looking for more rates from other lenders
• United Wholesale Mortgage review: If you’re working with a mortgage broker

Breakdown of Lower overall review score

• Affordability: 5/5
• Availability: 5/5
• Borrower experience: 4.3/5

Review 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.