Robinhood, known for revolutionizing stock trading for the masses, is now making waves in the mortgage market by offering discounted home loans. After a successful beta test earlier this year, the new mortgage offering is now available to Robinhood Gold subscribers.
Teaming up with Sage Home Loans, Robinhood users can access mortgage rates that are “at least 0.75% below the national average,” according to a press release. Additionally, Sage borrowers may qualify for a $500 credit towards closing costs for purchase or refinance loans. Sage, a leading home loan lender, underwrote over $750 million in mortgages in 2024.
CEO of Sage Home Loans, Mike Malloy, expressed his excitement about the collaboration with Robinhood, stating, “We’ve built a mortgage experience that’s simple, digital, and transparent — and collaborating with Robinhood shows what’s possible when technology meets accessibility.”
It’s important to note that Sage Home Loans is owned by Red Ventures, which provides affiliate links to Yahoo Finance.
Since its founding in 2013, Robinhood has disrupted the financial industry by offering commission-free stock and ETF transactions through its mobile app. The company has since expanded its offerings to include cryptocurrency trading and fractional share trading, allowing users to invest in expensive stocks for as little as $1.
Now, Robinhood is venturing into mortgage lending with its Sage Home Loans partnership. Sakhi Gandhi, director of partnerships at Robinhood, emphasized the company’s mission to democratize finance for all through this new benefit for annual Gold subscribers.
Sage Home Loans offers a mobile-friendly website, an online mortgage application, and promises a quick “four-minute” mortgage preapproval letter, enabling users to start house hunting sooner. According to Yahoo Finance analysis, Sage charged median loan costs of $4,642 and offered below-median interest rates around 6.245% to borrowers in 2024.
To access the mortgage offering, Robinhood Gold members can pay a $5 monthly fee or opt for a $50 annual subscription. While free 30-day trials are available, the discounts provided by Sage are only accessible to annual Gold subscribers.
In conclusion, Robinhood’s foray into mortgage lending with Sage Home Loans underscores its commitment to democratizing finance and providing accessible financial services to its users. The partnership between Robinhood and Sage showcases the power of technology in making home loans more transparent and convenient for consumers.
