Refinancing with Peoples Reserve allows homeowners to escape the "legacy" banking system by moving debt into a framework where Bitcoin is your credit score. By leveraging your Bitcoin holdings, you can choose a path that either eliminates traditional qualifying hurdles through 1:1 collateral or builds an "equity engine" to pay off a 30-year mortgage in as little as 8 years.
Comparison: Self-Repaying vs. Bitcoin Mortgage
The right choice depends on your current Bitcoin liquidity and whether you prefer to avoid traditional credit and income verification.
| Feature | Self-Repaying Mortgage (SRM) | Bitcoin Mortgage (BTC) |
|---|---|---|
| Required Collateral | Bitcoin (1:1 / 100% of loan value) | Bitcoin (20% Minimum BMR Escrow) |
| Qualifications | No credit or income checks | Standard credit & income checks |
| Interest Rate (APR) | 3% – 10% (based on LTV) | 3% – 6% (based on PRN Tier) |
| Upside of BTC | 100% Borrower's | Shared Split (20% to 50% Borrower) |
| Primary Benefit | Privacy and total Bitcoin retention | Fast payoff for lower BTC holders |
Option 1: The Self-Repaying Mortgage (SRM)
The SRM is a non-custodial loan for those with significant Bitcoin savings. It removes the friction of traditional underwriting by letting your assets speak for themselves.
- Bitcoin-Based Lending: Your Bitcoin is your credit score. There is no hard credit pull and no income verification (DTI) required to qualify.
- Variable APR Logic: Your rate is linked to your collateral ratio. If you post 1:1 Bitcoin collateral, your rate starts between 7%–10%. If you over-collateralize (e.g., 3:1), your rate can drop as low as 3%.
- Zero Liquidation Risk: Because the property title and the Bitcoin are dual-collateralized in a bankruptcy-remote SPV (held by BitGo), there are no margin calls as long as payments are maintained.
Option 2: The Bitcoin Mortgage (BMR Engine)
This option is for borrowers who want to buy or refinance with less than 1:1 Bitcoin collateral. It replaces the "sunk cost" of traditional mortgage insurance with a productive Bitcoin asset.
- Bitcoin Mortgage Reserve (BMR): Instead of a traditional down payment, you contribute 20%–30% of the loan value in Bitcoin into an escrow account. This escrow builds over time as your monthly BMR payments buy more Bitcoin.
- The 8-Year Payoff: Based on Bitcoin's historical growth, a 30-year mortgage can potentially be paid off in 8 years (Diamond Tier) or 12 years (Basic Tier) once your share of the escrow exceeds the remaining principal.
-
Upside Sharing: Unlike SRM, the lender shares in the Bitcoin growth. Your share of the appreciation is based on your Loyalty Tier:
- Basic: You keep 20% of the upside.
- Diamond: You keep 50% of the upside.
- Waiver Threshold: If you contribute 30% or more in Bitcoin at closing, the monthly BMR payment requirement is waived entirely.
The Refinance Path
- Bitcoin Escrow: Your Bitcoin collateral is placed with BitGo in a bankruptcy-remote SPV. This ensures no rehypothecation—your Bitcoin is never lent out and remains verifiable on-chain.
- PRN Integration: Your PRN Loyalty Tier sets your baseline APR and determines your "Upside Split" percentage for Bitcoin Mortgages.
- Amortization: You make monthly payments, but unlike a traditional bank, your BMR payments are actually purchasing more Bitcoin equity for your future payoff.
Loyalty Impact Table
| Tier | SRM Lowest APR (33% LTV) | BTC Mortgage APR | BMR Upside Share |
|---|---|---|---|
| Basic | 6% |
6% |
20% |
| Silver | 5% |
5.5% |
25% |
| Gold | 4% |
4% |
40% |
| Diamond | 3% |
3% |
50% |