This mortgage lender will start accepting Bitcoin payments
If you’re paying off a mortgage, you’re probably used to sending your loan officer a check every month or sending the payment automatically from your bank account. But now mortgage borrowers can have a new option to pay off their home loans – using cryptocurrency.
United Wholesale Mortgage recently announced plans to accept Bitcoin and other types of cryptocurrency as payment for outstanding mortgages by the end of the year. The company intends to start with Bitcoin (likely since it’s been around longer than any other digital coin), but then aims to expand to other digital currencies as quickly as possible.
United Wholesale is the first major mortgage lender to announce plans to adopt cryptocurrency as a payment option. But if he puts his plans into action, it is possible that more lenders will follow his lead.
Still, it begs the question: is it a good idea to make your mortgage payments with cryptocurrency? Or should you stick to the cash payments you’re used to?
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The downside of paying with Bitcoin
As with other investments, once you cash out your Bitcoin holdings, the potential for higher returns disappears. And so, if you use Bitcoin or some other cryptocurrency to pay off your mortgage, you cut off the ability to wait and see if your digital currency goes up in value.
Also be aware that if you withdraw Bitcoin (or any other cryptocurrency) to pay off your mortgage when it is worth more than what you paid, you are liable for capital gains tax on that return. on investment. Actions work the same way. If you sell stocks when they are worth more than the price you paid, you pay taxes on the gain. And for that reason alone, you might not want to regularly pay your mortgage with Bitcoin – or any other digital coin.
That said, it’s nice to have the option to pay off your home loan using Bitcoin or some other digital currency. Say that you are convinced that the value of your crypto holdings is about to go down. Using it to pay off your mortgage might be a good idea.
We don’t know what regulatory changes could arise that make paying a mortgage with Bitcoin less attractive or less financially sound. But the fact that a well-known mortgage lender is looking to start accepting Bitcoin could inspire many more people to jump on the cryptocurrency bandwagon.
Many people are still nervous about investing in cryptocurrency for fear that it will be too speculative. But as more merchants begin to accept it as a form of payment, those fears may subside. And if Bitcoin is deemed legitimate enough that mortgage lenders are willing to collect it for real estate debts, that should give investors confidence that it, and other similar cryptocurrencies, can really be here to stay.