Lower Mortgage Review 2024

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.

• Methodology

  To determine a mortgage lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; assistance for first-time homebuyers - 10%; down payment - 10%
  • Availability: Loan products - 50%; licensing - 40%; credit score - 10%
  • Borrower experience: Rate transparency - 45%; customer service - 25%; convenience - 10%; days to close - 10%; rate locks - 10%; reputation (bonus)

  Learn more about our methodology.

  How we suggest lenders to compare

  To help you make the most informed decisions, our editorial team suggests two (2) alternative mortgage lenders for each lender reviewed in our comparison table. In most cases, these alternatives 1.) share the same strength (affordability, availability or borrower experience) as the lender reviewed; and 2.) rate highly for Bankrate Score. In the event more than two lenders meet these standards, we suggest the ones with the lowest APRs.