PropTech startup Knock is introducing two new perks that enable homeowners to use the equity gains in their current property to make it more affordable to purchase another house.
Knock Home Swap offers “competitively-priced mortgages” and extends 100% of the financing necessary to enable people to buy a home before selling their current house. The new features now include an interest-free home equity advance, which homebuyers can use to buy down their mortgage rate by as much as 0.75%.
The startup is also offering those eligible for Knock Home Swap the option of making a down payment of as much as 30%, which would reduce monthly payments on another home by as much as one-eighth of a percentage point, according to a press release on Tuesday (Aug. 2).
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“With mortgage rates doubling since the start of the year and home prices continuing to grow at double-digits, buying a home has gotten a lot more expensive. At the same time, homeowners have more of their wealth tied up in their home than any other time in history,” said Knock 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 and then move on their own timeline and sell for top dollar. Now, they can use it to buy down their rate and put more money down, which will drive their rate even lower,” Black added.
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The down payment, home prep, and up to six months of mortgage payments on the old house, are all included as part of Knock Home Swap’s interest-free equity advance loan. Users of the program sell their houses on the market after they moved into their new homes, per the release.
The program also includes a 30-day closing guarantee, Home Prep Concierge and a backup offer on the old house in case a sale doesn’t happen within six months.
“More than 98% of Knock homes sell in 90 days or less, with 88% selling in 30 days or less,” according to the release.
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