Boston based residential lending platform RateGravity has raised $2m in new venture funding led by Boston Syndicate. RateGravity provides a software solution that enables residential lending from various lenders. The company allows consumers to finance their homes by eliminating the salesperson and providing a solution to compare, choose, and close with lenders.
Patrick Boyaggi thinks the old way of getting a home mortgage is over, along with the expectation that you'll have to a pay a higher interest rate because of a sales commission. That's why Boyaggi and Mike Tassone, two former community bankers, have launched RateGravity, a Boston startup that provides an automated service for matching homebuyers with low-interest mortgages, taking out the middleman. Without any marketing, the service has already matched over 150 people with $40 million in approved mortgages since last July, Boyaggi told me, with customers expected to save an average of nearly $30,000 over the life of their loans, compared to traditional lenders. Now, after expanding through word-of-mouth, the company is ready to kick things into overdrive.