As mortgage rates surged to around 8% in 2023, many potential homebuyers found themselves priced out of the market. However, New York startup Roam, founded by Raunaq Singh, is capitalizing on assumable mortgages, which allow buyers to take over a seller's existing loan. Roam has facilitated $200 million in home sales in 2024, charging a 1% fee to buyers. Singh estimates that using assumable loans can reduce monthly payments by 50% compared to current rates, presenting a viable option for buyers needing lower rates in today's market.
Singh claims that assumable loans can save buyers up to 50% on their monthly payments compared to purchases with current mortgage rates.
Roam aided in facilitating $200 million worth of home sales for 'several hundred' buyers in 2024, showing significant early traction.
You can bring 20%, which is $84,000, and get gap financing for the remaining $51,000 to receive a blended rate of 3.45%.
Roam charges buyers 1% of the purchase price, generating an estimated $2 million in revenue in 2024 based on $200 million in home sales.
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