This mortgage lender will start accepting Bitcoin payments

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If you are paying a mortgage loan, you are probably used to sending a check to your service staff each month, or sending a payment automatically from your Bank account… But now mortgage borrowers may have a new option for repaying mortgage loans – cryptocurrency

United Wholesale Mortgage recently announced that it plans to accept bitcoins and other types of cryptocurrency as payment on outstanding mortgages by the end of the year. The company intends to start with Bitcoin (most likely as it has been around longer than any other digital coin), but then seeks to expand to other digital currencies as quickly as possible.

United Wholesale is the first major mortgage lender announces plans to use cryptocurrency as a payment method. But if he realizes his plans, perhaps more lenders will follow suit.

However, the question arises: is it worth making mortgage payments in cryptocurrency? Or should you stick to your usual cash payments?

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The reverse side of bitcoin payment

As with other investments, once you cash out your bitcoin holdings, the potential for higher returns disappears. And so, if you use Bitcoin or another cryptocurrency to pay for your mortgage, you lose the ability to wait and see if your digital currency goes up.

Also keep in mind that if you are cashing out bitcoins (or any other cryptocurrency) to pay off your mortgage, if it costs more than you paid for it, you are required to pay capital gains tax on that investment income. Promotions work the same way. If you sell shares that are worth more than the price you paid, you pay income taxes. And for this reason alone, you may not want to regularly pay your mortgage with Bitcoin or any other digital coin.

However, it is a good idea to be able to pay off your home loan using bitcoin or another digital currency. Let’s say you are confident that the value of your cryptocurrency holdings is about to decline. Using it to pay off your mortgage can be a good idea.

We do not know what regulatory changes may occur that will make paying for mortgages in bitcoin less attractive or less financially beneficial. But the fact that a well-known mortgage lender wants to start accepting bitcoins could encourage many more people to join the victory over cryptocurrency.

Many people are still nervous about investing in cryptocurrency, fearing that it is too speculative. But as more and more merchants start accepting it as payment, those fears may subside. And if Bitcoin considered legal enough for mortgage lenders to be willing to collect it for housing debts, which should give investors some confidence that he and other similar cryptocurrencies can actually stay.

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