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If you want to buy property, you will most likely need a mortgage. Usually because you do not have any lying funds, but sometimes also because it is more attractive from a tax perspective. You often take out a mortgage loan for a period of about 30 years, where you borrow the money from the bank. You repay the amount in monthly installments, whereby you also immediately pay the interest. Currently, we are dealing with skyrocketing inflation rates, which means that interest rates are constantly being raised. As a result, borrowing money to buy a home is currently very expensive.
We are in exciting times, because the financial sector is turned upside down. We are well on the way to a decentralized open financial system, which means that more and more options are being developed. One of those new, revolutionary products is the crypto mortgage. Similar to a regular mortgage, but in this case you invest your crypto assets to make a down payment on real estate.
The first organization to come up with this is a previously relatively unknown lender from Miami: Milo. Their website states: Our strategy matches yours – keep HODLing.
If you are somewhat at home in the world of investing, then you probably know that it is smart to spread your funds. Betting everything on one asset is not the way to go. Milo is convinced that it is important to HODL your cryptos but buying is at least such a strategic move. These are the advantages of a mortgage crypto loan with Milo:
Of course, borrowing money is never without risks. Cryptos are volatile and are therefore a risky investment. Suppose you take out such a crypto mortgage, then your assets are the collateral. If a crash occurs, your assets will decline, but so will your collateral. This can happen:
Suppose you have a million dollars worth of crypto in your wallets. Then you can take out a mortgage for a million dollars via Milo. Your interest rate is then around 6.95%, with 30 years to pay off the amount. You make your payments in fiat or in crypto, which gives you more flexibility and freedom. If you meet all the conditions, the deal will be completed within a few weeks and you do not have to make a down payment.
Because the lender works together with Gemini and Coinbase, it is quick to switch if you have placed your crypto there. As a result, the application is ready in a few minutes and the deal is completed within a few weeks. This is what the step-by-step plan for a crypto mortgage looks like:
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