The mortgage industry is riddled with inefficiencies and unnecessary costs. Over-inflated rates, excessive fees for things like “origination” or “processing,” and missed closing dates cost American homebuyers billions every year. Homeownership is a cornerstone of financial stability and prosperity, yet the path to it is unnecessarily complicated and expensive.
Tomo was founded to change this industry. We’ve developed technology that streamlines the entire mortgage process. With AI at the core of our operations, we’re able to offer interest rates that are, on average, 0.50% lower than the industry standard—and up to 1% lower than the biggest lenders. We’re saving the typical homebuyer about $4,000 at closing.
Naturally, people like to save money. So we’ve been growing—about 3.5x last year, and we’re on-track to become one of the biggest lenders in America.
As our business gets bigger and better, we looked for new partners who appreciated our unique value and commitment to doing what’s right for people. Thankfully, we found it in Progressive Insurance.
Progressive, along with several other organizations, have invested in Tomo’s success and vision for the future. But Tomo remains an independent company.
What does this mean for homebuyers?
This means we can hire more people and offer new services in more places, without sacrificing honest, human support that earned us so many 5-star reviews.
We’re able to share learnings, respond to what customers really need, and develop new tools to make buying a house less frustrating.
It also means we can think big about what we can do, together, to make buying a home easier and more affordable for more people. We’re really excited about this part.
What’s next for Tomo?
We’re building something truly special. Our team is working now to end the frustrating conventions of lenders everywhere and offer people a far more honest and useful experience.
For example, we’ve always been annoyed by the practice of “rate keeping”—where lenders force you to talk to a salesperson before simply telling you their rates and fees.
So we just released a new tool that makes it far easier for people to not only see the rates we offer, but also understand what they’re buying. We outline all the potential closing costs and fees from day one, so you know what you can expect. We even spent months figuring out how to help people really understand rate points, where other lenders try to profit from that confusion.
Of course, we’re not losing sight of the important work we’re doing already. Every day, we’re helping people figure out how to buy their first home and get into a lifetime of wealth creation. This is important, life-changing work, and we take it seriously.
But, let’s face it—this industry needs to change. It’s still too costly, too time consuming, and too greedy. With the support of one of the biggest, most innovative companies in financial services today, we’re able to make big strides and truly transform an industry.
So, here’s to a future where every homebuyer can enjoy low rates, without the gotchas.
If you’re ready to start your journey to homeownership, get pre approved with Tomo Mortgage today.
