It seems like only yesterday when buying a home meant locking into 30-year mortgage rates of just 2.25%. Well, those days are long gone as rates today are topping 7% as wicked high inflation has compelled central bankers to hike benchmark rates to get rising rates under control.
While the high end of the market continues to do OK, buyers that can pay cash, for individuals in need of a traditional mortgage, things are different/
Enter Roam, a Fintech that recently announced $1.25 million in seed funding.
According to a recent release, Roam offers a solution to the ongoing “home affordability crisis.” Roam is taking advantage of a little-known quirk that all government-backed loans (IE FHA and VA loans) are eligible for assumption by law, comprising about one-third of mortgages in the U.S.
Roam founder and CEO Raunaq Singh, Founder & CEO of Roam, says assumable mortgages are one of the most undervalued assets in the US.
“We started Roam as a way for homebuyers to take advantage of the assumable mortgage opportunity and increase access to affordable rates so that more Americans can realize their dream of homeownership.”
Tim Mayopoulos, former CEO of Fannie Mae, says Roam has a “once-in-a-lifetime opportunity” to bring a needed solution to the home purchasing market.
Roam advertises their listing to buyers through its website, to discover homes with an assumable mortgage today. The company says that, on average, Roam buyers save up to 50% on monthly mortgage payments compared to buying a home with a traditional mortgage at today’s rates. Roam handles all of the details to make the loan transfer.
Roam’s service is currently available in GA, AZ, CO, TX, and FL, but reports it will expand into more markets in the near future. You can browse listings today if you are thinking about purchasing a home and want a far better rate on a mortgage.
