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 the secure escrow account held in your name. As Bitcoin appreciates, the value of this escrow grows. When the value of your portion of BMR escrow reaches the balance of the loan, the BTC is liquidated, and you own the home free and clear.
BMR vs. Traditional PMI
With a traditional bank, PMI is a sunk cost that provides you zero return. With Peoples Reserve, the BMR escrow value is split between the borrower and the lender based on the borrowers average PRN loyalty tier over the life of holding the loan.
- 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 per $100,000 borrowed (based on credit score). 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 of the BMR escrow is shared. Your PRN Loyalty Tier determines how much of the Bitcoin wealth you keep.
| Loyalty Level | Interest Rate (APR) | Your Share of BTC |
|---|---|---|
| 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 BMR 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.