Now Homebuyers Can Use the Home Swap™ Interest-Free Home Equity Advance to Increase Their Down Payment and Lower Their Mortgage Rate
NEW YORK, August 2, 2022 /PRNewswire/ — Buyers and sellers are quickly realizing that traditional home loans don’t work when rising interest rates and rising home prices combine to make buying a home more expensive than ever. Knock, the fast-growing fintech company that makes all homebuyers Power Buyers, today introduced two new features that allow homeowners to take advantage of the unprecedented capital gains they’ve amassed in their current home. to make buying a new home more affordable.
Starting today, homeowners who take advantage of the Knock Home Swap1, which includes a competitively priced mortgage and 100% of the financing needed to buy before selling, are eligible to use the Home Swap’s interest-free equity advance in two ways to reduce interest and monthly payments on their new home. They can use it to:
- Redeem their mortgage rate up to 0.75%
- Make up to 30% down payment on their new home, which would further reduce their monthly payment by up to an additional eighth of a percentage point
“With mortgage rates having doubled since the start of the year and house prices continuing to grow in double digits, buying a home has become much more expensive. At the same time, homeowners have more of their wealth tied up in their home than anyone else at any other time in history,” said Knock’s co-founder and CEO. Sean Black. “Thousands of homeowners have used the Knock Home Swap to work with the agent they trust to compete with cash offers to win their dream home, then follow their own timeline and sell for the best price. Now, they can use it to buy back their house rate and put more money down, which will drive their rate even lower.”
In just one year, the typical American homeowner has seen their home equity increase $55,300 in 2021, according to CoreLogic, and with the median-priced home hitting a record high of $416,000 in June that only continued to rise in 2022. A homebuyer buying a home at the median price could reduce their mortgage payment by almost 14%, or $259 per month, by taking advantage of the interest-free home exchange equity advance to increase their down payment by 20% to 30% and qualify for a lower interest rate. Paying one point to lower their interest rate by 0.5% would reduce $90 per month, saving more than $32,000 over the term of the loan.2
Knock Home Swap’s interest-free equity advance loan covers the down payment on the new home, home preparation, and up to six months of mortgage payments on the old home. Home Swap customers can sell their old home on the open market for the maximum sale price after moving into their new home, avoiding the hassle of living through repairs or viewings.
Knock also provides a 30-day closing guarantee, Home Prep janitorial service, and a back-up offer on the old home in the unlikely event that it doesn’t sell within six months. Over 98% of Knock homes sell in 90 days or less, with 88% selling in 30 days or less.
Knock partners with more than 350 real estate brokerage firms with 120,000 agents in approximately 5,900 zip codes to bring its innovative home loan financing solutions to homebuyers nationwide for home purchases up to $3 million.
1Mortgages offered by Knock Lending LLC. NMLS 1958445. Equal Housing Lender. For licensing information, go to: www.nmlsconsumeraccess.org.
2This example is for educational purposes only, prices are subject to change at any time.
Knock is rewriting the rules of homeownership with mobile technology and innovative home financing solutions that make all homebuyers Power Buyers. Knock’s flagship Home Swap™ gives consumers a non-contingent offer on their phone to buy the home they want before selling the home they have, providing certainty that you’ve found your dream home and the convenience of not having to undergo repairs or projections. Knock GO™ (Secured Offer) is a cash home loan solution for first-time home buyers looking to compete in today’s hot housing market.
Launched in 2015 by the founding team members of Trulia.com, Knock currently operates in 75 markets nationwide. knock raised $900 million in debt and equity from top-tier investors including Foundry Group, Greycroft, RRE, Parker89 and The National Association of Realtors®, giving NAR’s 1.5 million members the ability to market homeownership solutions property of Knock to their customers. For more information visit: knock.com.
Contact: [email protected]