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Knock Introduces Features That Make Buying a New Home More Affordable – PR Newswire

Now home shoppers can use the Home Swap™ interest-free home equity advance to increase their down payment and lower their mortgage rate

NEW YORK, Aug. 2, 2022 /PRNewswire/ —  Buyers and sellers are quickl…….

Now home shoppers can use the Home Swap™ interest-free home equity advance to increase their down payment and lower their mortgage rate

NEW YORK, Aug. 2, 2022 /PRNewswire/ —  Buyers and sellers are quickly realizing that traditional home loans don’t work when rising interest rates and home prices combine to make buying a home more expensive than ever before. Knock, the fast-growing fintech company that makes all homebuyers Power Buyers, today introduced two new features that give homeowners the ability to tap into the unprecedented equity gains they’ve amassed in their current house to make buying a new home more affordable.

Effective today, homeowners who take advantage of the Knock Home Swap1, which includes a competitively priced mortgage and 100% of the financing necessary to buy before you sell, are eligible to use the Home Swap’s interest-free home equity advance in two ways to lower the interest and monthly payments on their new home. They can use it to:

  1. Buy down their mortgage rate by as much as 0.75%
  2. Make up to a 30% down payment on their new home, which would reduce their monthly payment further by as much as an additional one-eighth of a percentage point

“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.”

In just a year, the typical U.S. homeowner saw their home equity increase $55,300 in 2021, according to CoreLogic, and with the median-priced home reaching a record of $416,000 in June that has only continued to increase in 2022. A homebuyer purchasing a median price home could reduce their mortgage payment by nearly 14%, or $259 a month, by leveraging the Home Swap’s no interest equity advance to increase their down payment from 20% to 30% and qualify for a lower interest rate. Paying a point to lower their interest by 0.5% would trim an additional $90 per month, saving more than $32,000 over the life of …….

Source: https://www.prnewswire.com/news-releases/knock-introduces-features-that-make-buying-a-new-home-more-affordable-301597013.html

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