Fintech Milo launched the world’s first crypto refinance offering and undercollateralized mortgage, the company announced.
This new refinance product will let borrowers access U.S. dollars by pledging their crypto assets and their property to cash out up to 100% of their property’s home equity value. The borrowers can then use the cash proceeds from the property to pay off existing debt, repurchase crypto, or invest in other assets.
Milo’s crypto refinance offering allows those who previously sold their crypto or took out a short-term crypto loan to buy a home in cash to extend the repayment term to 30 years and gain access to financing that they previously may not have been able to obtain, according to the company’s press release.
“Based on the success of our crypto mortgage offering, we are now able to empower those who would have liked 100% financing via a crypto mortgage when purchasing their home. With our crypto refinance they can benefit from having access to their home equity when attractive investment opportunities come up,” said Josip Rupena, CEO and founder of Milo.
Milo’s crypto refinance also requires “significantly less” crypto collateral than similar products on the market, the company says. While crypto loans usually require 2 or 3x the loan amount in collateral, Milo’s product only requires 1x the loan amount or less. The interest cost savings of the crypto mortgage, when compared to a crypto loan, are also considerable. Consumers can save up to $175,000 over a 5-year term on a $1 million loan, according to Milo.