Lower mortgage/heloc lender

New to Real Estate · Charlotte, NC · Member since 2022 · 7 posts · 2 votes

Hey folks 👋 - I'm curious if anyone has used the lender, Lower (https://www.lower.com/)?

I'm considering them for a HELOC to help fund my first deal. Wondering if you used them before and had a good experience.

Thanks!

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Dave Skow

Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes

@Joshua B.- thanks 1) on the 1st mtg refinance proposal at 4.1% - sounds like they are offering you the higher note rate so they can absorb some of the closing costs .....make sure you get a loan estimate and review the details about them picking up all costs ( titel / escrow / recording / credit etc ...) 2) also check the index / margin and caps on the new loan offer and compare these to the present loan details ...if you keep this loan past the rate/ payment adjustment period - you want to make sure you are aware of how the ARM can change 3) the offer to do " free " refinances in the future is no big deal beacuse any lender can offer this via a higher rate to absorb all costs

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Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
4y
@joshua

@Joshua B. havent heard of them but it looks like the can go to a 95% cltv on a primary home ...which is good
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Joshua B.
OP
New to Real Estate · Charlotte, NC · Member since 2022 · 7 posts · 2 votes
4y
@Dave Skow Exactly, the 95% LTV is what attracted me initially. I just got off the initial call with a rep from Lower earlier today, and so far so good. I have about $110k equity in my primary home and they are able to get me 95%. However, they way Lower structures this program is by also taking on your first mortgage
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Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
4y
@Joshua B.- taking out the 1st mtg ? what does that mean ? do they then offer a large HELOC for the full amount ? with todays rates , many borrowers wont want to have their 1st mtg rates touched ? this sounds a bit bizarre
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Joshua B.
OP
New to Real Estate · Charlotte, NC · Member since 2022 · 7 posts · 2 votes
4y
Quote from @Dave Skow:

@Joshua B.- taking out the 1st mtg ? what does that mean ? do they then offer a large HELOC for the full amount ? with todays rates , many borrowers wont want to have their 1st mtg rates touched ? this sounds a bit bizarre

basically in order to offer the 95% LTV they want you to use them as the lender for the mortgage on the property the HELOC is associated with. So, they would refinance your current mortgage and then provide the 95% LTV HELOC.

In my situation with the option they gave me it doesn't seem to be far off from my current mortgage, I'm currently with rocket mortgage w/ a 2.8% ARM and to refi with Lower (in order to get access to the HELOC) the new interest rate would be 4.1. The new refi mortgage payment came in about $100 more.

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Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
4y
interesting ...you are increasing your 1st mtg by 1.3% in order to obtain the HELOC ? what are the fees / costs associated with the 1st mtg refinance ? this make sense if you were planning to refnance the 1st mtg anyways ...otherwise - I would either keep looking for another 95% heloc or make due with a 90% cltv heloc program
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Joshua B.
OP
New to Real Estate · Charlotte, NC · Member since 2022 · 7 posts · 2 votes
4y
Quote from @Dave Skow:

interesting ...you are increasing your 1st mtg by 1.3% in order to obtain the HELOC ? what are the fees / costs associated with the 1st mtg refinance ? this make sense if you were planning to refnance the 1st mtg anyways ...otherwise - I would either keep looking for another 95% heloc or make due with a 90% cltv heloc program

Right, it sounded like that’s the way in which Lower is able to offer that high percentage and offer this program. The only fees would be the appraisal cost.

Refi’ing wasn’t my intention initially tbh, but I haven’t had my current primary mortgage that long (refi’d with rocket mortgage last July), so I’m not opposed if the numbers work out.

I'm still shopping around, though. If you have any lenders for HELOC please let me know 😊

Also, another point Lower mentioned was they provide $0 closing costs on future refis as a customer. Need to look into this more, just thought it was unique

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Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
4y
@Joshua B.- thanks 1) on the 1st mtg refinance proposal at 4.1% - sounds like they are offering you the higher note rate so they can absorb some of the closing costs .....make sure you get a loan estimate and review the details about them picking up all costs ( titel / escrow / recording / credit etc ...) 2) also check the index / margin and caps on the new loan offer and compare these to the present loan details ...if you keep this loan past the rate/ payment adjustment period - you want to make sure you are aware of how the ARM can change 3) the offer to do " free " refinances in the future is no big deal beacuse any lender can offer this via a higher rate to absorb all costs
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Joshua B.
OP
New to Real Estate · Charlotte, NC · Member since 2022 · 7 posts · 2 votes
4y
Quote from @Dave Skow:

@Joshua B.- thanks 1) on the 1st mtg refinance proposal at 4.1% - sounds like they are offering you the higher note rate so they can absorb some of the closing costs .....make sure you get a loan estimate and review the details about them picking up all costs ( titel / escrow / recording / credit etc ...) 2) also check the index / margin and caps on the new loan offer and compare these to the present loan details ...if you keep this loan past the rate/ payment adjustment period - you want to make sure you are aware of how the ARM can change 3) the offer to do " free " refinances in the future is no big deal beacuse any lender can offer this via a higher rate to absorb all costs

Thank you, that’s all great advice. I was able to get some details on the new mortgage, the cap was 2% up or down, so the range would be 2.1% - 6.1%. And good point on the the “free refinances for life” selling point, they really make it sound like it’s a unique feature.

I’m having some better conversations with Quorum FCU. No refi involved on first mortgage and still at a nice cltv, 85%.

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Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
4y
@joshua

@Joshua B.- thats good to hear .....fyi - when checking the caps on an ARM loan - there are 3 different caps to understand and be aware of : 1) the intial cap is the amount the rate can change on the intial adjustement - this is often 5 or 6% ...so if your rate was intially 4% - this means the rate could intially change to 10% + 2) the lifetime cap is the max amount the rate can change over the loans life - this is often the same as the intial cap at 5 or 6% 3) the 3rd cap is the one you mention which is the period cap ..this is the most the rate can change once the loan begins to adjsut annually or every 6 months ..this is often 2%
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Zach BossonBusiness Member
Lender · Member since 2023 · 42 posts · 15 votes
2y
Hey Bigger Pockets!
I love to hear Josh and Dave recognized our unique ability to go up to 95% of the value of the home! It's a special product.

Regarding not having a standalone HELOC product, in 2022 during the heat of the low rate boom we did suspend our standalone product, and I can absolutely understand that wasn't ideal!

In 2024 we are now a leader in the standalone HELOC and Closed End Second(CES) space! And now a proud featured lender with BiggerPockets - we also still offer that unique 95% product, but we also have Standalone HELOCs and CES down to 640 credit scores, on investment properties up to 85-90% LTV max and more!
[email protected]888-885-7789
First Access Lending4.975 Reviews
Website View Page
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