A $12 million funding round will enable digital mortgage marketplace company Own Up to expand nationally, company officials said Wednesday.
Own Up, which loosely resembles a mortgage brokerage, will expand to 15 new states in 2021, including California. Consumers already have access in Colorado, Connecticut, Florida, Georgia, Maine, Massachusetts, Michigan, New Hampshire, Pennsylvania, Rhode Island and Texas.
The Boston-based company functions as an adviser and marketplace for customers looking for mortgage financing. It says it brings new transparency to the process by eschewing the traditional broker commission, typically 1.15% of the loan. Through its digital platform, Own Up handles the application process and receive a fee of 0.40% of the loan amount from the lender.
Own Up, founded in 2015, claims that customers who used the service in 2020 would save more than $100 million in interest payments over the lifespan of their loans.
Consumers can also use Own Up to determine loan approval status and for how much, as well as the ability to compare lenders and pre-qualified loan offers, the company said.
“This new round of funding will enable us to help more people, in more ways,” Patrick Boyaggi, the chief executive officer and co-founder said in a press statement. “We will continue to develop technology that eliminates information asymmetry and creates a best-in-class experience for everyone searching for a fair deal on their mortgage.”
Even with the uptick last week, mortgage rates remain at consumer-friendly level, with the average rates for a 30-year and 15-year fixed loans at 2.79% and 2.23%, respectively. That’s 23 consecutive weeks with average mortgage rates falling under 3%.
Brian Spaly, general partner at Brand Foundry Ventures – the company that led this round of funding for Own Up – spoke to the technological shift industry companies are experiencing. More customers are preferring to complete all aspects of home buying and financing online, he said.
The funding, he said, goes hand-in-hand with Own Up’s mission to expand beef up its digital platform.
“Technology companies are transforming financial services and enabling consumers to achieve better financial outcomes, which is core to Own Up’s mission,” Spaly said. “In this next phase of growth, Own Up will strive to reach more buyers and homeowners through geographic expansion and become the premier online destination for any American looking to purchase or refinance.”
The funding round brings Own Up’s total fundraising to roughly $24 million, according to Crunchbase.