By Jeff Taylor, Julian Hebron | The Basis Point
My friend Jeff Taylor who’s the founder of Digital Risk and a Mortgage Bankers Association board member did a good 3-minute drill on crypto mortgage and crypto in housing with Maria Bartiromo today. Link to video below, and here are a few important notes on core themes he covered:
– Despite all the crypto mortgage headlines, you can’t make your mortgage payment in crypto yet
– There are exceptions to this but mainstream mortgages you’d actually want don’t allow it yet
– Why? Because these loans are backed by Fannie Mae and Freddie Mac, which is what gives them safe, long terms at the best possible rates
– As for how crypto mortgage concepts relate to down payments, there are some plays where you can pledge your unsold crypto as collateral to get a low- to no-down home loan
– But these are also niches and total volume on such loans is in the mere millions, which is almost non-existent compared to the $3.9 trillion in new U.S. mortgage loans made last year
– Using crypto for monthly payments or down payments will continue to evolve, but it’s a long way before it’s mainstream
