The Atlanta-based fintech Knock has unveiled Knock Bridge Loan Plus, a new product designed to pay off a homeowner’s existing mortgage upfront.
According to the company, the product can pay off the homeowner’s current mortgage and release the equity locked up in their old home, thus eliminating their monthly mortgage payments when they qualify for a new home mortgage.
The product supports a variety of loan programs, including VA loans, and carries a one-time 2.25% fee. Knock’s products are currently available in 25 states and the District of Columbia.
“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, 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.”
Great product but the 2.25 % fee is still a stumbling block for most homeowners where home values/ list price is above $500,000.