Knock—the real estate technology company which helps lenders and agents make it easier for homeowners to buy before they sell—today announced the launch of Knock Bridge Loan Plus. This new financing option now pays off the homeowner’s existing mortgage upfront, eliminating double payments.
Knock stated that by paying off homeowners’ current mortgage and releasing the equity locked up in their old home, Bridge Loan Plus eliminates their monthly mortgage payments when they qualify for a new home mortgage. This structure provides borrowers greater flexibility to work with any preferred lender and helps more buyers make competitive, non-contingent offers.
“The Knock Bridge Loan Plus gives homeowners more financial breathing room, more choice in lenders and a faster path to their next home,” said Sean Black, the co-founder and CEO of Knock. “It embodies our mission to put consumers first by removing friction and complexity from the homebuying process while empowering our partners to serve more buyers with less hassle.”
The company noted that the Bridge Loan Plus provides all of the benefits of the original Bridge Loan, and more. Homeowners continue to benefit from Knock’s guaranteed backup offer, and they retain all equity gains. The Bridge Loan Plus carries the same one-time 2.25% fee as the original Bridge Loan through the end of the year.
This fee can be offset—or even exceeded—by the savings from avoiding up to six months of mortgage payments on the old home, according to a release. For instance, one Knock client with a $151,000 mortgage balance avoided paying $8,257 in mortgage payments over six months, covering the $8,100 contract fee. This doesn’t include any discount the borrower may receive from the seller for making a non-contingent offer or any premium they receive for their current home for making improvements using the Bridge Loan.
By supporting a broader range of loan programs, including VA loans, and allowing buyers to work with any lender, including banks, Knock noted that the Bridge Loan Plus empowers loan officers and agents to serve a broader range of clients and close more deals faster and with more confidence.
“Just when I thought the process couldn’t get any simpler, it’s now even better,” said Rebecca Landro, sales manager at Guild Mortgage. “Doing a couple of bridge loans each month has already made a big difference in my business, and this change will now allow more buyers to take advantage of bridge loans for their future home purchases. I can’t wait to share this with my Realtor partners and buyers. It’s going to be a game changer!”
For more information, visit https://www.knock.com/.
