LoanSnap Inc. today launched the world's first smart loan technology that protects people against dumb loans. The company's data scientists found that dumb loans cost Americans $58 billion last year alone. Until now, mortgage companies have lacked the data and technology needed to offer a sound financial choice to families. Rather than push the same mortgage every other lender offers, LoanSnap analyzes a customer's financial situation in seconds and shows simple ways to benefit from a smarter loan.

In preparation for the launch, LoanSnap raised $8 million in Series A financing led by True Ventures with Baseline Ventures, Richard Branson's Virgin Group, Core Innovation Partners, Joe Montana's Liquid 2 Ventures, OVO Fund, Transmedia Ventures, and angel investors participating. The company has raised $12.3 million to date.

"I love to invest in companies that make people's lives better and LoanSnap is exactly that," said Sir Richard Branson. "Its technology allows consumers to take control of their financial lives and will shake up the mortgage market. The strong founding team combined with its tech and a dedication to helping consumers will be a winning formula."

LoanSnap uses artificial intelligence to analyze a person's financial situation in seconds, offering easy-to-understand options like, "Pay off your credit card debt and save $580 per month." LoanSnap then sorts through thousands of loan options to identify the best choice. It's the first loan technology that accounts for important factors, including the U.S. financial environment, to ensure that people have the best available loan now and into the future.

"Before I talked to LoanSnap I got tons of calls from people trying to convince me I should go for the lowest rate on my home loan," said Mr. Lopez, a LoanSnap customer. "LoanSnap's smart loan analyzed my situation in seconds and gave me a much better option, which ended up saving me $900 a month."

Today, Americans are burdened with a record-high $931 billion in household credit card debt according to a NerdWallet analysis. LoanSnap's data scientists found that in 2017 Americans lost $58 billion to dumb home loans because they didn't take this credit card debt into account when choosing a home loan.

Why? Most mortgage companies optimize for interest rates without considering other factors because it's easy to sell the lowest rate. They don't have the financial information they would need to make a better recommendation. Even if they did, they can't get the information and calculate the customer's available options in anything less than hours.

Imagine the Johnson Family which, like the average homeowner in America, pays $1,000 per year in interest on $7,150 of credit card debt at a 14% interest rate. The Johnsons want to refinance their house.

What the mortgage company selling the dumb loan didn't tell the Johnsons is that they could put that credit card debt on their mortgage at a much lower rate: 4.5% instead of 14%. If they moved their $7,150 of credit card debt into their mortgage, their interest payments would fall from $1,000 per year to about $325 per year, saving them $675 annually. However, if the average for credit card debt excluded families that don't carry any debt, the savings from a smart loan would be significantly greater - about $1,519 a year.

Smart loans help people save money by analyzing their financial information in seconds. With LoanSnap's iOS and Android apps, users scan their driver's license or enter their address, then enter the last four digits of their social security number, tap through a few questions, and instantly get their personal smart loan options. People may also use LoanSnap's website or consult with a loan officer by phone to get their money-saving options. LoanSnap emails a smart loan summary to all users whether or not they choose LoanSnap.

This approach shows people what's possible before they commit to a loan. Even better, smart loans keep updating the financial information and alert customers if there are better options available based on an ever-changing personal financial situation and economy.

"Buying or refinancing a home is one of the most important financial transactions you make in life," said Karl Jacob, CEO and founder of LoanSnap. "We are on a mission to help families enjoy peace of mind and financial stability. We achieve this by delivering a technology that can see and analyze your entire financial picture in real time then offer simple options that fit your family's needs today and into the future."

LoanSnap was founded by CEO Karl Jacob and CTO Allan Carroll, both serial entrepreneurs. Jacob was an early advisor to Facebook and has founded numerous companies. Jacob's previous startups were acquired by Microsoft, AT&T, Zazzle, and Proofpoint.

For more information, please visit www.goloansnap.com.

About LoanSnap Inc.

LoanSnap invented the world's first smart loan technology that uses artificial intelligence to analyze a person's entire financial picture and shows simple ways to benefit from a smarter loan now and into the future. By working with LoanSnap, users can save money, time and feel confident that their home loan will safeguard their financial needs. Visit www.goloansnap.com or download the iOS and Android apps to get pre-approved smart loan options now.