Lower
- HELOC, HELOC and refinance combo
- From 8.75%
- Not disclosed
- 833-519-9579 to apply, 844-645-6937 for qualifying information
Based in Columbus, Ohio, Lower is a financial technology startup specializing in home loan products. Lower offers home financing, refinancing and home equity lines of credit.
Lower operates solely online to help consumers find home financing solutions. It also has an app that makes it convenient for consumers to get more information and apply for loans. As an online lender, Lower makes applying for a loan simple and convenient.
Lower’s loans and HELOCs are good for anyone who wants to complete the process quickly. The lender’s unique HELOC combo product is helpful if you’re looking to refinance your mortgage while taking out a line of credit. We like that Lower will waive lender fees for any refinances if you already have a loan from the company.
Read more: Best HELOC Lenders
Lower: At a glance
| Products offered | HELOC, HELOC and refinance combo |
| APR range | From 8.75% |
| Loan amounts | $15,000 to $500,000 |
| Credit score requirement | Not disclosed |
| Repayment terms | 10-year draw period and 20-year repayment period, or three- to five-year draw periods and a 15-year repayment period |
| Average time for approval | Preapproval typically within one business day; 21 days on average to close |
Pros and cons
Pros
Access more of your home equity: You can borrow up to 85% of your home’s equity when you take out a HELOC with Lower. That number increases to 95% when you refinance your mortgage while taking out a HELOC.
No refinance fees for life: If you finance a home purchase or refinance a loan with Lower, it will waive all lender fees for future refinance transactions on that property.
Interest-only payments: Pay interest only on the amount you borrow during the draw period.
Cons
Only available in some states: Lower offers HELOCs in 45 states but not Alaska, Hawaii, New York, Rhode Island or Vermont.
Lowest rates only available for HELOC refinance combo: To get the lowest interest rates on your Lower HELOC, you’d need to combine your HELOC with a mortgage refinance.
No home equity loan option: Unlike many lenders, Lower does not offer home equity loans or a fixed-rate HELOC option for borrowers.
Home equity loan product options
HELOC: With a Lower HELOC, you can borrow up to 85% of your home’s equity minus your mortgage balance and access a flexible line of credit. You can choose the standard 10-year draw period and 20-year repayment period. The lender also offers a draw period of three to five years followed by a 15-year repayment period, which is a good option if you don’t want to commit to a 30-year loan.
HELOC combo: With Lower’s HELOC combo, you refinance your existing mortgage while taking out a line of credit. This option allows you to borrow more money (up to 95% of your home equity) compared to a stand-alone HELOC (up to 85% of your home equity) because the lender holds both the second and first liens on your property. Lower will then waive all lender fees for future refinance transactions on that property.
Fees
Lower HELOCs don’t charge many fees, but you will still have to cover a few things. Its HELOCs are subject to a 1% origination fee. You’ll also be subject to an appraisal fee ranging between $400 and $600, but there are no annual fees.
If you already have a loan with Lower, the company waives the lender fees on any refinances. So, if you take out a second loan through Lower, you won’t have to pay any origination, underwriting, processing or administrative fees.
How to qualify
Lower looks at many similar factors to other lenders to see if a consumer qualifies for a loan. It assesses factors including credit history, debt-to-income ratio, employment status, projected monthly payments on the property, current income, the condition of the property and the loan-to-value.
Credit history and credit score requirements vary, but you’ll likely need a credit score of at least 620 or higher to qualify.
Lower doesn’t provide specific details about the criteria it considers for applicants on the website. Still, you can get these details by talking with the customer service team about whatever loan product you are interested in.
Applying for a HELOC with Lower
Lower has a completely digital application process and claims it takes less than five minutes to complete.
The form will ask for basic information, such as your name, contact information, property location and loan term length. You’ll then be prompted for more information about your current loan and the property. Before you start the application, you should gather essential details about your current mortgage. If you have questions about any part of the application process, you can talk to an expert by calling 833-519-9579.
If you want to do more research before you hit “apply,” you have options, too. Lower has an “Advice” section on its site with helpful resources to get you the information you need before applying. You can run the numbers to estimate the cash you would pocket if you sold your home, refinanced or took cash out of your equity.
Customer service
Getting in touch with the Lower team is easy. You can contact Lower by calling, texting or sending an email. The customer service team can help you Monday through Thursday, from 6 a.m. to 3 p.m. PT (9 a.m. to 6 p.m. ET) and Friday, from 6 a.m. to 1 p.m. PT (9 a.m. to 4 p.m. ET).
- Email: 833-920-2273
- For qualifying information: 844-645-6937
- To apply: 833-519-9579
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