Lower Mortgage Review 2024
580
0% to 3.5%
Conventional, FHA, VA, jumbo, home equity loans, HELOCs
See how we reached our verdict below.
- Online application
- Lender can come to borrowers’ home or workplace for document signing
- Customer service is available via text
- Not available in all 50 states
- Minimal details on loan products, rates and fees available on the lender’s website
- No physical locations
Lower mortgage overview
Lower, founded in 2018, is an online mortgage lender based in New Albany, Ohio.
- Areas of service: 45 states, excluding Alaska, Hawaii, New York, Rhode Island, Vermont, and District of Columbia
- Digital service: Online-only lender
- Headquarters: 8131 Smiths Mill Road, New Albany, OH 43054
- Website: Lower.com
Lower rates, terms and fees
Rates
Lower doesn’t advertise its mortgage rates online. But national Federal Financial Institutions Examination Council (FFIEC) data shows that Lower’s average interest rate in 2023 was 6.71%, with a rate spread of 0.39 percentage points, down from 0.72 in 2022. This decrease indicates the lender’s rates have become more competitive in the past year. Its 2023 average rate spread is about half the average among all lenders we reviewed. The rate spread indicates the difference between a lender’s mortgage rates and the average prime offer rate (APOR), the average rate offered to well-qualified borrowers.
Fees
While Lower recommends buyers save between 3% and 6% of the home’s purchase price for closing costs, the website doesn’t specify the precise fees the lender may charge.
According to 2023 FFIEC data, the average total loan cost for a mortgage with Lower was $9,061, which included $4,331 in origination fees. Lower’s origination fees are mid-range compared to similar lenders, but its average total loan costs are on the higher end.
What discounts does Lower offer?
Lower doesn’t offer specific discounts to homebuyers.
What types of mortgage loans does Lower offer?
Lower offers a variety of home loans including:
Conventional loans
Lower offers fixed-rate conventional loans with terms of 10, 15, 20, 25 and 30 years, as well as cash-out refinancing options that come with free refinancing for life, meaning Lower covers lending fees for all future refinances.
Conventional loan qualification requirements
Lower does not disclose its specific requirements for conventional loans. But typical requirements include:
- Minimum 620 credit score
- Minimum 3% down payment
- Maximum 50% debt-to-income (DTI) ratio
FHA loans
FHA loans are available to buyers who need more flexible qualification criteria, specifically when it comes to credit scores.
FHA loan qualification requirements
Lower offers limited information on its FHA loan requirements. But typical requirements include:
- Minimum 500 credit score with a 10% down payment, or 580 with a 3.5% down payment
- Minimum 3.5% down payment with credit scores of 580 or higher; 10% for scores between 500 and 579
- Maximum 57% DTI ratio
- Two years of verifiable employment
VA loans
Lower offers VA loans backed by the U.S. Department of Veterans Affairs to eligible veterans and service members.
VA loan qualification requirements
Lower does not disclose its specific VA loan requirements, but typical requirements include:
- Many lenders require 620
- Maximum 41% DTI ratio
- A minimum amount of service, based on the type of service member
- A Certificate of Eligibility (COE) from the VA
- A consistent two-year employment history (exceptions possible)
- Meeting VA loan limits and property guidelines
Jumbo loans
Jumbo loans offered by Lower are mortgages for homebuyers seeking amounts that exceed local conforming loan limits.
Jumbo loan qualification requirements
Lower does not disclose its specific requirements for jumbo loans. They typically have stricter requirements than conforming loans, however, which include:
- Minimum 700 credit score
- Minimum 20% down payment
- Maximum 45% DTI ratio
- Sufficient cash reserves to cover future mortgage payments
Home equity loans and home equity lines of credit
Lower’s home equity loan offerings include home equity lines of credit (HELOCs), which enable you to borrow up to 95% of your home’s value, up to a maximum of $500,000, for access to a larger portion of your equity.
Home equity loan and HELOC qualification requirements
Lower doesn’t disclose its specific requirements for HELOCs, but it does state that a minimum loan amount is $15,000, and HELOC transactions are subject to a 1% origination fee.
Lower mortgage qualifications
| Credit score minimum | Conventional loans: 620 FHA loans: 500 to 580 VA loans: 620 |
| DTI ratio Debt-to-income (DTI) ratio compares your monthly gross income to your monthly debt payments. maximum | Conventional loans: 50% FHA loans: 57% VA loans: 41% |
| Down payment minimum | Conventional loans: 3% FHA loans: 3.5% VA loans: Not disclosed |
Don’t know your credit score? Get your free score on LendingTree Spring today.
How to boost your loan approval odds
Lower doesn’t disclose detailed lending requirements, which makes it difficult to determine how it evaluates borrowers’ eligibility. However, nationwide FFIEC data show that in 2023, Lower approved 83.7% of loan applicants, with those approved having an average loan-to-value ratio (LTV) of 85.4%.
Compared to other lenders, Lower’s 16.3% denial rate suggests a relatively lenient approval process, especially given that a higher proportion of approved applicants had a DTI above 43% than below 40%. This suggests a higher DTI may not be a significant barrier to approval.
How to apply for a Lower mortgage
1. Choose your loan type
Visit Lower.com and select “Buy a Home,” “Refinance,” or “HELOC” depending on your needs.
2. Get prequalified
Provide basic information online to get prequalified and view potential rates, all without impacting your credit score.
3. Submit a loan application
Complete your loan application for preapproval, where you can lock in your rate and finalize your loan terms.
Documents you’ll need for prequalification or preapproval
- Identification
- Tax documents
- Bank statement
- Pay stubs
- Debt and asset statements
- Gift letters (if you’re using gifted funds)
Find out more about how to apply for a home loan.Is it safe to get prequalified with Lower?
Yes, it’s safe to get prequalified with Lower Mortgage. Prequalification only involves a soft credit pull, but once you submit your application and get preapproved, a hard inquiry will appear on your credit.
Lower’s customer service experience
New customers can contact Lower Mortgage Monday through Friday, 9 a.m. to 6 p.m. ET.
- Phone: 888-509-8301
- Email: [email protected]
Current Lower Mortgage customers can contact support Monday through Friday, 9 a.m. to 5 p.m. ET.
- Phone: 833-920-2273
- Text: 855-293-1776
- Email: [email protected]
An online form is also available for customers with specific questions.
How does Lower compare to other lenders?
|  |  |
|
|---|---|---|---|
| LendingTree’s rating | |||
| Minimum credit score | 500 to 620 | 500 | 620 to 650 |
| Minimum down payment | 0% to 3.5% | 0% to 3.5% | 0% to 3.5% |
| Rate spread Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) the lender offered to mortgage customers in 2023. The higher the number, the more expensive the loan. | 0.39% | 0.40% | 0.53% |
| Loan products and programs |
|
|
|
| Better for: | Borrowers who prefer an online-only mortgage experience. | Borrowers with credit under 600. | Borrowers seeking a traditional mortgage lending experience. |
Lower vs. AmeriSave Mortgage
Lower Mortgage and AmeriSave are both online lenders offering streamlined mortgage lending processes. These lenders offer a similar suite of loan products, but AmeriSave allows borrowers to secure an FHA loan with a credit score as low as 500, making it a more accessible option.
Overall, AmeriSave caters to borrowers with more challenging credit situations, whereas Lower has slightly higher credit qualifications for its loan products.
→ Read more in our full AmeriSave mortgage review.
Lower vs. PenFed Credit Union
Lower Mortgage and PenFed Mortgage offer competitive loan products, but they differ in service delivery and features. Lower operates online, providing a seamless application process and access to a range of mortgage options, including conventional and government-backed loans. PenFed, however, is a full-service credit union that serves members nationwide, providing in-person service at its physical branches.
While Lower stands out to borrowers seeking a convenient online lending experience, PenFed caters to borrowers seeking a more traditional mortgage process.
→ Read more in our full PenFed mortgage review.
Ready to compare lender offers on LendingTree? Get Your Rates TodayHow LendingTree rated Lower Mortgage
LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.
LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half-point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (conventional, FHA and VA). In some cases, additional information was provided by a lender representative.
Lower’s scorecard:
Publishes rates online
Offers standard mortgage products
Includes detailed product info online
Shares resources about mortgage lending
Provides an online application
= 0 points = 0.5 points = 1 point
Frequently asked questions
Lower Mortgage’s standout online feature is its fully online application. Additionally, the lender offers a secure online portal for easy document uploads and a dashboard for borrowers to track their loan status and receive updates throughout the process.
Yes, Lower Mortgage, founded in 2018, is a legitimate online lender offering a diverse range of home loans.
You can view more info about Lower’s state licenses and registrations through the Nationwide Multistate Licensing System and Registry (NMLS) website.
A Lower home loan typically impacts your credit score, but the effect will be minor and temporary if you continue to make all loan payments on time. According to LendingTree data, after getting a mortgage, it’s typical for your credit score to go down by about 20 points and to recover within a year.
Lower Mortgage holds a 4.8 out of 5 rating on TrustPilot, with 96% of over 2,500 reviews at 5 stars. While generally praised, 1% of customers rated it poorly, citing issues like poor communication, unresponsiveness and delays that affected their credit and financial plans.
Lower also receives strong reviews on the Better Business Bureau (BBB) website, where it has an A+ rating and received 4.83 out of 5 stars across more than 700 customer reviews.