The Yahoo Finance view: Lower lacks very little when it comes to mortgage options; however, information on many of the loans and services available isn’t found online.
Key benefits
Lower offers a huge selection of loan products, though many aren’t listed online.
A “refinance for free” offer lets you to skip the $1,500 lender fees on new loans after your first purchase mortgage or refi with Lower.
Text, call, or email your loan officer; you’ll get a reply, even on weekends.
Need to know
Lower charged higher than average mortgage rates to borrowers in 2024, the latest data available.
Loan costs were on the high side, too, and include a $1,999 origination charge on conventional loans.
Lower has 100 locations in the U.S. and offers loans in 47 states and Washington, D.C. (excluding Hawaii, New York and Vermont).
Visit Lower’s website to get started.
Lower Mortgage offers the following types of home loans:
Conventional loans
FHA loans
VA loans
USDA loans
Purchase mortgages
Refinance loans
Cash-out refinance loans
Fixed-rate mortgages
Adjustable-rate home loans
Jumbo loans
Construction loans
Renovation loans
Medical professional loans
Interest-only mortgages
Second home loans
Nonqualified mortgages
Investment property loans
Buydown loans
Bridge loans
Manufactured home mortgages
Piggyback loans
Nonwarrantable condo loans
ITIN mortgages
Reverse mortgages
HELOCs
Home equity loans
Lower mortgage does not offer the following types of home loans:
As you can see from the list above, Lower offers plenty of loan options for first-time home buyers, including government loans. In fact, 28% of the loans underwritten by Lower in 2024 were FHA loans.
The lender also uses alternative, nontraditional credit to help qualify borrowers. That can include:
Utility bills such as electric, gas, and water
Medical insurance premiums, excluding payroll deductions
Auto insurance payments
Medical bill payments
Tuition payments
Cannabis income
Lower also told Yahoo Finance that they will assist borrowers with state housing finance agency loans and assistance programs. However, it is one more service not mentioned on its website.
MORE: Explore Yahoo’s list of the best lenders for first-time home buyers.
In addition to cash-out refinancing, Lower offers the two most popular second mortgages: home equity lines of credit and home equity loans.
HELOCs from Lower allow access to up to 95% of your home’s value. Interest-only payments are available during the 10-year draw period. And while lines of credit are usually adjustable-rate products, a fixed-rate option is available.
Lower requires a minimum FICO score of 600 to qualify for a HELOC and allows a debt-to-income ratio up to 50%. The minimum draw for Lower HELOCs is $20,000, and the average closing time is 14 days.
The Lower lump-sum home equity loan offers a fixed interest rate up to $500,000. A 640 credit score is required, with a DTI up to 50%. Average funding time is 20 to 30 days.
Lower HELOC and home equity loan fees
Lower says loan fees and closing costs for second mortgages vary by state. Both HELOCs and HELs have no annual fees and no prepayment penalties.
Lower has easy-to-find sample mortgage rates, accessed from the top menu bar on its website. Both purchase and refinance rates are shown for FHA, VA, jumbo, and conventional loans with 15- and 30-year fixed-rate terms.
Unfortunately, the advertised rates are lowered by two or more discount points. They are also based on 30% down payments. Such stringent qualifications may make Lower’s rates look more favorable, but in reality, the typical borrower may not meet these requirements to secure the lowest rates.
One unique feature we really like: Near the bottom of the Lower mortgage rates page, there is a list of purchase and refinance rates by state.
Yahoo Finance uses 2024 Home Mortgage Disclosure Act data comprised of 10 million home loan applications to score mortgage lenders on issued mortgage rates and total loan costs. We score each lender on a scale of 1 (lowest) to 5 (highest).
For example, regarding mortgage rates, a lender with a lower score charged a higher-than-median mortgage interest rate for loans issued in 2024. A higher score would indicate that a lender granted lower-than-median home loan interest rates to borrowers in 2024.
With total home loan costs, a lower score would indicate that a lender charged higher-than-median total home loan costs in 2024. A high rating would mean that a mortgage lender offered lower-than-median all-in home loan costs in 2024.
What this means: Lower offered a higher-than-median mortgage rate of 6.625% and a much higher-than-median total loan cost of $8,015.51 to borrowers in 2024.
An online application is the bare minimum expectation these days. Lower’s application flow begins online but is completed with a loan officer.
To gain preapproval, you will provide some basic information online, and a loan officer will take the process to the finish line. That includes gathering additional information as needed, verifying income, and submitting the application for underwriter review.
We found two calculators on the Lower website: a mortgage monthly payment estimator and a debt-to-income calculator. Both are easy to use and offer some background information.
A “learning center,” accessible from the site’s bottom menu, had pages of articles on a wide range of topics, including home equity, modular homes, government loans, and the mortgage process.
It’s easy to find sample mortgage rates on the Lower website, including state-by-state rates.
Lower says its average closing time in the last six months on conventional conforming loans was 25 days.
Many of the loan products and services offered by Lower aren’t mentioned on its website, so borrowers may not be aware of additional mortgage options.
Lower’s mortgage rates and loan costs are higher than the industry average.
Lower has a vast selection of mortgage products, though not all are featured on its website. Chase highlights special mortgage programs for first-time home buyers, including grants and low-down-payment loans.
Chase has extensive educational resources. Lower has only the basics. And while Chase has average loan costs and mortgage rates, Lower’s rates and fees are higher.
Chase Home Lending review
Lower doesn’t mention low-down-payment conventional loans, but Rocket is front and center with its 1% down mortgage called ONE+.
For home equity, Rocket offers a home equity loan, while Lower offers a HEL and a HELOC. Both Lower and Rocket offer much higher-than-median loan costs. Lower’s home loan rates are higher-than-average, while Rocket’s are a little better, yet average.
Rocket Mortgage review
Yes, Lower is a mortgage lender formerly known as AmeriHome Mortgage. It is a privately held limited liability company formed in 2013.
Dan Snyder is the founder and CEO of Lower. He was previously a co-founder of QuickInsured, an independent insurance agency, and an executive with Wells Fargo and American Bank.
Lower is based in Columbia, Maryland, with branches across the nation.
Methodology:
Yahoo Finance reviews mortgage lenders based on five primary considerations: 1) Interest rates. Using 2024 Home Mortgage Disclosure Act data from almost 5,000 mortgage companies, we analyze mortgage lenders based on issued mortgage rates below or above the annual median of reporting lenders. 2) Affordability. A measure of loan product availability and the willingness of a lender to offer government-backed loans, low down payments, down payment assistance, and consideration of nontraditional credit. 3) Loan costs. HMDA data is again analyzed, and total loan costs are compared to the annual median. 4) Rate transparency. The ability of a website user to obtain a mortgage interest rate estimate. We also consider whether rates are enhanced with discount points or high credit score requirements, disclaimers revealing rate assumptions, sample advertised rates, and whether adjustable or no discount point rate estimates are available. 5) Online features. An analysis of the educational material, calculators, and additional resources available to users.
Advertisers or sponsorships do not influence ratings.
Editorial disclosure for mortgages:
The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including interest rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the lender’s website for the most current information. This site doesn’t include all currently available offers.
