Soon You Can Pay Your Mortgage With Bitcoin – And Here’s Why You Want To

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Soon you can pay your mortgage with bitcoins & # x002014;  and that's why you want

Soon You Can Pay Your Mortgage With Bitcoin – And Here’s Why You Want To

US mortgages have taken a step into obscurity: the country’s second-largest housing lender announced that soon borrowers would be allowed to make their monthly payments in cryptocurrency.

“We are thrilled that (by the end of September) we can actually get this done earlier than anyone else in the country,” United Wholesale Mortgage CEO Mat Ishbia said last week to Wall Street analysts.

Provision of blocked borrowers historically low mortgage rates greater flexibility in making payments will benefit the lender. But is there any real advantage to paying a mortgage with bitcoin instead of cash?

Potential Benefit – and Headache

Person Considering Potential Bitcoin Issues

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UWM, the second largest mortgage lender in the US after Rocket Mortgage, believes accepting bitcoins will provide additional convenience for the company’s borrowers.

“We have almost 1 million consumers who pay us a monthly mortgage payment,” Ishbia says, “and if adopting bitcoin or other types of cryptocurrency makes our customers’ lives easier, we’ll find a way to do it.”

Tech journalist Naomi Brockwell highlighted UWM’s decision during a recent interview with Coindesk. She said that while bitcoin hasn’t proven itself particularly useful for making payments in the past, mortgages could be a different story.

“When you are dealing with large amounts of money for a home, I think this is exactly the use case for which Bitcoin is suitable in terms of payments.” Brockwell said

For borrowers with cryptocurrency reserves: making mortgage payments easier while the value of bitcoins is rising. But when MoneyWise asked UWM to share how the process would actually work for consumers, the company said it was “too early to talk about the details.”

In the coming weeks, borrowers will be looking for answers to several questions:

  • Will UWM accept real cryptocurrency or will the consumer need to exchange it for dollars first using a cryptocurrency exchange?

  • Will bitcoin sellers rely on additional fees if they need to use a third party exchange?

  • What happens if a delay or glitch in the exchange makes your mortgage payment late?

  • Who will determine the bitcoin / US dollar rate? Many crypto exchanges publish different courses.

“We will communicate the plan to consumers when everything is ready,” Ishbia says.

Other ways to make your mortgage more manageable

Pensive adult woman looking to the side while sitting on sofa in living room at home

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If you are successful bitcoin investor With a UWM mortgage, using a portion of your income to pay off the mortgage can be a convenient cash alternative.

But that won’t ease your mortgage burden. There are other ways to do this.

If you qualify, consider refinancing your mortgage. As the economy improves and inflation heats up, the minimal borrowing costs homeowners experienced in the past year could quickly become a thing of the past. Refi at today’s rates may save hundreds of dollars a month

If long-term high interest debt is absorbing all the cash flow left over after you pay your monthly mortgage payment, it might be time to consider getting a debt consolidation loan with a lower interest rate. You will reduce your interest expenses, which will help you pay off your debt earlier

You can also lower the cost of home ownership by cutting home insurance premiums. Small shopping comparison can lead to big savings whenever you need to buy or renew your policy.

Shopping can help you too pay less for car insurance

This article provides information only and should not be construed as advice. Provided without warranty of any kind.

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