Information
About lender
Lower (Lower Holding Company) is a mortgage lender that operates solely online, with offices in New Albany, Ohio, and Columbia, Maryland. The company, in addition to mortgages, allows borrowers to save for a down payment and assists them in obtaining homeowners' insurance. Lower generally preapproves suitable borrowers within one business day of applying, and closings take an average of 21 days. Lower provides pre-qualifications as well. Existing borrowers, in particular, are eligible for the "Free Refi For Life" program, which waives lender and application fees and lets you earn up to $500 toward the down payment using the Lower app.
Lower has an A rating with the Better Business Bureau but is not accredited by the BBB. Based on over 1,800 reviews, the lender received 4.9 out of 5 stars, an excellent rating from Trustpilot. In 2021, the Consumer Financial Protection Bureau obtained no mortgage-related complaints regarding the company.
Pros and cons
Pros
- The process is entirely conducted over the internet.
- App meant to assist borrowers in saving for a down payment.
- Existing customers do not pay lender costs on refinances.
- A Lower home equity line of credit (HELOC) allows you to borrow up to 95% loan-to-value (LTV).
- The company will match every dollar saved in its app as HomeCash (up to $500), which may be used for fees and other closing costs.
Cons
- Fees for new borrower transactions are high.
- You might not be able to discover a Lower branch in your state (they are certified in 42 states and the District of Columbia).
- Discovering specific mortgage information on the site is challenging without initially revealing your details.
Terms and conditions
The company offers several types of loans for borrowers looking to refinance or purchase a new home:
- Conventional loans
- FHA loans
- VA loans
- USDA loans
- Conforming loans
- Jumbo loans
- Fixed-rate loans
- Adjustable-rate loans
- HELOCs
- Refinance loans.
Fixed-rate loans are available in 10-, 15-, 20-, 25-, and 30-year durations. Lower also has a 5/5 adjustable-rate mortgage (ARM), which we discuss in the "special programs" section below.
As long as they have a credit score of at least 620, first-time homebuyers can pick conventional loans with a 3% down payment. Borrowers with credit ranging from 580 to 619 may qualify for an FHA loan with a 3.5% down payment; with a 10% down, FHA loans borrowers with scores as low as 500 may be approved.
If a military borrower is eligible for a VA loan, they do not need to make a down payment. If you desire to buy a home in a USDA-designated rural area, you usually need a 640 credit score.
Borrowers can use the company's services to sell a property, acquire home insurance, and hire a realtor, in addition to a wide range of mortgages.
Funding a loan
After you give some basic information, the company will check your credit and send you loan suggestions. Then, a Lower's loan counselor will call you to discuss your options. Even though the process is online and automated, you should communicate with your loan officer via email, text message, or phone. After the closing meeting, you will sign the papers and finish the deal. Some borrowers can complete it in 14 days.
