Brooklyn, New York--(Newsfile Corp. - June 10, 2022) - Solve Finance, which is based out of Portland, Maine, as well as Brooklyn, New York, has created a unique "debt optimizer" -- what the company describes as the world's first automated scanner for savings across debts that can help someone reduce their debts to improve their financial standing so that they can apply for whatever mortgage they need.
At a time of rising mortgage rates and other rising barriers preventing people from securing the loans they need for major life purchases, one financial services company is embracing the latest technology to help break down those barriers.
For example, most mortgages have a strict debt-to-income qualifying standard which means an aspiring homebuyer can't be spending more than 45 percent of their monthly income on repaying debts if they want to get approved for a loan to buy their dream property. Solve Finance's eye-catching software crunches the latest financial data to identify savings of potentially thousands of dollars to manage and improve that ratio.
"We aim to truly minimize your costs and deliver the greatest savings by using all the data we have for your lowest-cost debt options." - says Solve Finance's Founder and CEO Sean Hundtofte.
The debt dashboard is based on Hundtofte's extensive experience working for more than 20 years in finance, as well as his in-depth knowledge of technology as a computer scientist. "I got into investing in consumer finance and saw borrowers making repayment mistakes on their debts," he says, and that was the trigger that led him to do deep research on mortgages and other lendings that ultimately led to Solve Finance.
"Borrowing is complicated but easily fixable by using technology. You just need to set up the right incentives," Hundtofte adds, which his company can do.
The dashboard could help millions of people who would otherwise see their goal of owning a home slip out of reach, particularly for minority borrowers.
A recent report by the National Association of Realtors found that Black mortgage applicants are twice as likely to be denied as white loan applicants. Combine that with news stories about soaring mortgage rates -- which will inevitably price even more people out of the property market - and buyers need every assistance they can secure.
"The finance system has created unnecessarily complex processes which have harmed low - to moderate-income earners. This has created a persistent gap in homeownership for LMI and Black and Latinx individuals," says Hundtofte. "Our overly complicated financial system in the U.S. has unfortunate distributional effects that exacerbate inequality - higher-income consumers are more likely to shop around and refinance not to get overcharged for credit, and use the lowest cost types of financing to start with. This gets compounded into even greater wealth gaps when it leads to denials in home ownership. With Solve Finance, we want to change this."
Hundtofte adds that the company wants everyone to benefit from its debt dashboard so that any client can minimize whatever borrowing cost they have in mind. "We want to help solve the complicated financial problems of shopping, refinancing, and managing their debts," he adds.
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