The brand that brought stock trading to the masses now offers deeply discounted home loans. After beta testing this summer, the new home loan offering is now rolling out to Robinhood Gold subscribers.
Robinhood is not quietly entering the mortgage market. By partnering with Sage Home Loans, Robinhood users can access Sage mortgage rates “at least 0.75% below the national average,” according to a press release from Robinhood. On top of that, Sage borrowers can qualify for a $500 credit to cover the closing costs of purchasing or refinancing the loan.
Sage is a leading mortgage lender and will underwrite more than $750 million in mortgages in 2024, according to government data.
“This work reflects Sage’s commitment to leading the future of home lending,” Mike Malloy, chief executive of Sage Home Loans, said in the release. “We’ve created a mortgage experience that is simple, digital and transparent, and collaborating with Robinhood shows what’s possible when technology meets accessibility.”
Disclaimer: Sage Home Loans is owned by Red Ventures, which provides affiliate links to Yahoo Finance.
Robinhood (HOOD) was founded in 2013 and reportedly garnered a waitlist of 1 million potential users before launching a mobile app offering commission-free stock and ETF trading. It has since expanded its menu to include cryptocurrency trading.
In 2019, it launched fractional share trading, allowing users to buy chunks of expensive stocks, such as Amazon and Google, for as little as $1.
Now, the company is expanding into home loans with its Sage Home Loans partnership.
“Robinhood’s mission is to democratize finance for everyone, and this new benefit for annual Gold subscribers underscores that commitment,” Sakhi Gandhi, Robinhood’s head of partnerships, said in a statement.
Sage features a mobile-friendly website as well as an online mortgage application, and promises a “four-minute” mortgage pre-approval letter, allowing you to start looking for a home and making serious purchases sooner.
According to Yahoo Finance’s analysis of Home Mortgage Disclosure Act data, Sage charged average borrowing costs of $4,642 and below-average interest rates of around 6.245% to borrowers in 2024.
The mortgage offer is available to Robinhood Gold members who pay a $5 monthly fee or a $50 annual subscription. Free 30-day trials are available; however, you must have an annual Gold subscription to qualify for discounts offered through Sage.
Laura Grace Tarpley Edited this article.