Redfin Veteran Launches Startup To Unlock Thousands In Monthly Savings Saying The Goal Is 'To Make Assumable Loans Just Another Financing Type'

A former Redfin RDFN management lead and founder of a Credit Karma-acquired startup has launched RetroRate, a California-based proptech company aiming to bring assumable mortgages into the mainstream. On June 9, RetroRate announced both its official launch and a $2.2 million seed round led by Swift Ventures, with additional backing from Eniac, Cooley Ventures, Keshif Ventures, Interlock Capital, Launch Factory, and Arkus Nexus.

Andy Taylor, who previously led product at Redfin and founded the mortgage startup Approved before its 2018 acquisition by Credit Karma, told Real Estate News that RetroRate was inspired by mortgage trend data he analyzed while overseeing rate tables during his time at Credit Karma.

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Real Estate News says that while analyzing rate data in 2020 and 2021, Taylor discovered assumable loans, an option that allows buyers to take over a seller's mortgage rate and balance, which he had never encountered despite working in the industry since 2009.

“I’ve been in the business since 2009, and I had never heard about assumable loans,” Taylor told Real Estate News. “It was almost shocking.”

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Up To 25% Of Listings Hold Assumable Mortgages, But The Market Is Unaware

Assumable mortgages are typically linked to government-backed loans such as the Federal Housing Administration, the Department of Veterans Affairs, or the U.S. Department of Agriculture programs and can save buyers hundreds or thousands of dollars monthly compared to new loans at current interest rates, Real Estate News says.

According to Taylor, RetroRate's analysis of multiple listing service and property data suggests that between 20% and 25% of homes listed for sale today may have an assumable mortgage attached. Despite the prevalence, Real Estate News says that buyers and agents rarely pursue these deals due to outdated, paper-based processes and the lack of centralized digital tools.

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RetroRate provides a proprietary, searchable database of homes with assumable mortgages, both on and off market, and ranks them by financial appeal. Buyers pay a 1% fee at closing to access the service, which Taylor described as a "supercharged rate buy-down" with a much shorter payback period.

"Our goal is to make assumable loans just another financing type, like a 30-year fixed or a 5/1 [adjustable-rate mortgage]," Taylor told Real Estate News. "We don't want agents to become experts in this process—we want to be the ones that make it easy for them."

Taylor Sees A Process Ripe For Automation And Scale

RetroRate concluded its beta phase in June after working with agents across 10 states including California, Florida, Texas, and North Carolina. The company launched its assumable loan platform in those same markets, which were chosen based on the volume of assumable mortgage inventory and affordability challenges, Real Estate News reports. 

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While the benefits are clear, the process remains cumbersome. Taylor told Real Estate News that some deals require buyers to make large cash payments to cover the gap between home value and mortgage balance, and lender reviews can extend timelines beyond that of conventional financing.

Taylor acknowledged these issues but sees them as indicators of a system overdue for modernization, Real Estate News says, believing that automation and digital tools can reduce friction significantly.

A Long-Term Bet On Buyer Demand

Taylor emphasized that RetroRate is built to thrive regardless of interest rate movement. With the majority of U.S. homeowners still holding mortgages below current market rates, he expects older loans to remain attractive for years, Real Estate News reports.

"There is always going to be someone out there who's got that better rate," Taylor told Real Estate News. "RetroRate is not about one narrow trend. It’s about restoring affordability and creating liquidity. That’s a mission we can build on no matter what rates do."

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