Understanding the Bitcoin Mortgage (BMR Engine)
The Bitcoin Mortgage is designed for borrowers who want to purchase a home or refinance an existing one while retaining their Bitcoin's future upside. While traditional banks require a cash down payment and force you to pay for Private Mortgage Insurance (PMI), the Bitcoin Mortgage allows you to use your Bitcoin as an equity engine to pay off your home faster.
At a Glance
| Feature | Details |
|---|---|
| Minimum Contribution | 20% of home value in Bitcoin |
| Qualifications | Standard credit and income verification |
| Repayment Term | 30 years (Standard) / ~8–12 years (Projected) |
| Interest Rate | 3% – 6% (Based on PRN Loyalty Tier) |
| BMR Payment | Replaces PMI; funds buy Bitcoin for your escrow |
How the Bitcoin Mortgage Reserve (BMR) Works
The core of this product is the Bitcoin Mortgage Reserve. Instead of "burning" money on traditional PMI—which only protects the lender—you make a monthly BMR payment.
Every cent of your BMR payment is used to buy Bitcoin for a secure escrow account held in your name. As Bitcoin appreciates, the value of this escrow grows. Once your share of the escrow exceeds the remaining principal on the loan, you can pay off the mortgage in full, often decades ahead of schedule.
BMR vs. Traditional PMI
With a traditional bank, PMI is a sunk cost that provides you zero return. With Peoples Reserve, BMR is a forced savings vehicle.
- Legacy PMI: You pay $200–$400/mo. Over 10 years, you lose ~$36,000 with $0 equity built.
- Bitcoin BMR: You pay as little as $10–$50/mo (based on credit). Over 8 years, that Bitcoin could grow to cover your entire mortgage balance.
Loyalty Tiers and Upside Sharing
Because the lender provides financing for the property while your Bitcoin grows, the appreciation (upside) of the BMR escrow is shared. Your PRN Loyalty Tier determines how much of that Bitcoin wealth you keep.
| Loyalty Level | Interest Rate (APR) | Your Share of BTC Upside |
|---|---|---|
| Basic | 6% | 20% |
| Silver | 5.5% | 25% |
| Gold | 4% | 40% |
| Diamond | 3% | 50% |
The Fast Track to Ownership
By leveraging Bitcoin's historical growth (CAGR), the Bitcoin Mortgage transforms a 30-year debt into a short-term hurdle.
- At 30% BTC Growth: Projected payoff in 8 years (Diamond Tier).
- At 20% BTC Growth: Projected payoff in 11 years.
Safety and Security
Your Bitcoin is held by BitGo, an industry-leading qualified custodian, in a bankruptcy-remote Special Purpose Vehicle (SPV).
- No Rehypothecation: Your collateral is never lent out or used for platform leverage.
- Transparent Reserves: View your escrow growth and on-chain proof of reserves 24/7 through your dashboard.
- No Liquidation Risk: As long as your monthly payments are made, your Bitcoin is secure regardless of market price fluctuations.