The Peoples Reserve Refinance is designed for homeowners who want to transform their property into a wealth-generating asset without ever moving out. While traditional refinancing involves invasive credit checks and predatory interest rates, our seamless "Sell-to-TruFi" process allows you to secure your home on superior terms—effectively turning your mortgage into a platform where Bitcoin’s upside works to retire your debt for you.
Table of Contents
- Refinance vs. Traditional
- How does the Refinance process work?
- Do I have to move out of my home during the refinance?
- What are the primary financing options?
- What are the "Guaranteed Protections" with either choice?
- What happens to my collateral if the market crashes?
- How exactly does the title transfer work?
- What is the "Dynamic Interest Rate" and how does it benefit me?
- PRN Loyalty Levels & APR Benefits
- Product Deep Dive: SRM vs. BMR
- Self-Repaying Mortgage (SRM) Refinance
- Bitcoin Mortgage Refinance (BMR)
- Does Peoples Reserve offer second-position loans (Home Equity Lines)?
- "How does the PRN token affect my refinance?
Refinance vs. Traditional
ReFi into a Self-Repaying Mortgage or a Bitcoin Mortgage
| Feature | Self-Repaying Mortgage | Bitcoin Mortgage | Traditional |
|---|---|---|---|
| Bitcoin as pristine collateral | ✅ | ✅ | ❌ |
| No credit checks required | ✅ | ❌ | ❌ |
| No income verification | ✅ | ❌ | ❌ |
| No liquidation risk | ✅ | ✅ | N/A |
| Receive back BTC collateral | ✅ | ❌ | ❌ |
| 30-year terms available | ✅ | ✅ | ✅ |
| Bitcoin upside pays off mortgage | ✅ | ✅ | ❌ |
| Zero rehypothecation | ✅ | ✅ | N/A |
How does the Refinance process work?
The process is a seamless "Sell-to-TruFi" model. You sell your home to TruFi (our exclusive liquidity provider) at fair market value to pay off your existing mortgage. TruFi then immediately seller-finances the home back to you under superior terms. You never move out; the transition is purely financial.
Do I have to move out of my home during the refinance?
No. You remain in your home throughout the entire transaction. The sale to TruFi and the seller-financing back to you happen seamlessly to ensure you stay in place.
What are the primary financing options?
You can choose between two flagship products based on your collateral and financial goals:
- Self-Repaying Mortgage (SRM): Best for those who can post 100% or more of the property value in sound money collateral (Bitcoin, Gold, or Silver).
- Bitcoin Mortgage (with BMR): Best for those contributing at least 20% of the property value in Bitcoin.
What are the "Guaranteed Protections" with either choice?
- Pristine Collateral: Bitcoin serves as the foundation of your loan.
- No Liquidation Risk: Your collateral is immune to price volatility; there are no margin calls or forced liquidations.
- Zero Rehypothecation: Collateral is held in a bankruptcy-remote SPV (BitGo) with on-chain proof of reserves.
- Asset Upside: You retain the upside of the Bitcoin, which works to pay off your mortgage.
What happens to my collateral if the market crashes?
Peoples Reserve offers a Non-Liquidation Guarantee. Your collateral is immune to price volatility. There are no margin calls. Only a failure to make your agreed-upon monthly payments can trigger a default or liquidation event.
How exactly does the title transfer work?
To facilitate the refinance, you sell your property to TruFi at its current fair market value. TruFi then immediately provides seller-financing back to you. This structure replaces your traditional bank mortgage with a private contract. While the legal title rests with TruFi during the financing term, your rights to the home are secured through a seller-finance agreement that guarantees you stay in the home with full "Stay & Save" protections.
What is the "Dynamic Interest Rate" and how does it benefit me?
The Dynamic Interest Rate is a variable APR that adjusts based on your commitment to the ecosystem and the performance of your assets. Rather than being stuck with a high fixed rate, this structure allows your borrowing costs to decrease as your financial position strengthens.
PRN Loyalty Levels & APR Benefits
Regardless of which product you choose, your PRN Loyalty Level is the primary driver of your rate. Loyalty level is based on the value of PRN tokens held in your account relative to your portfolio and mortgage balances.
The Benefit: Higher tiers unlock lower rates across the entire Bitcoin Powered Mortgage suite. By reaching Diamond Tier, you can access the cheapest cost of capital in the world—as low as 3% APR.
SRM: Over-collateralization & Protection
For the Self-Repaying Mortgage, your rate is further influenced by the value of your Bitcoin, Tokenized Gold, or Silver.
- The 3:1 Threshold: To maintain the lowest possible rate, you are encouraged to maintain a 3:1 over-collateralization ratio. If you withdraw excess upside and drop below this threshold, your interest rate will adjust upward.
- Safety Caps: To protect you from market volatility, the rate is capped. Over any 30-day period, the rate can only increase by a maximum of 5% or decrease by a maximum of 4% from your starting APR.
BMR: Credit Score Rewards
For the Bitcoin Mortgage, your traditional creditworthiness is used to lower your monthly expenses.
- Credit-Based Rates: While the APR is driven by loyalty, your monthly BMR payment is determined by your credit score.
- The Benefit: We reward high credit scores with BMR rates as low as $10/month per $100K borrowed (for scores of 780+). This ensures that your "equity engine" remains affordable while you leverage Bitcoin’s growth to pay off your home early.
Product Deep Dive: SRM vs. BMR
What qualifies as "Sound Money" for an SRM?
The Self-Repaying Mortgage (SRM) accepts Bitcoin, Tokenized Gold, or Tokenized Silver as collateral. Unlike traditional loans, no credit pull or income verification is required, the collateral is the qualification.
How does the BMR "Secondary Equity Engine" work?
With a Bitcoin Mortgage (BMR), your monthly payments (which replace traditional PMI) are used to purchase Bitcoin that is held in an escrow reserve. As Bitcoin appreciates, this reserve is designed to pay off your mortgage principal decades ahead of schedule.
Self-Repaying Mortgage (SRM) Refinance
What makes the SRM unique?
The SRM allows you to access the lowest cost of capital in the world (3–10% APR) by overcollateralizing. Because it is backed by sound money, there are no credit checks and no income verification required.
What are the tax implications?
The SRM is specifically structured to be tax-efficient, minimizing tax events while maximizing your liquidity and asset growth.
Bitcoin Mortgage Refinance (BMR)
How does the BMR differ from a traditional mortgage?
Unlike traditional Private Mortgage Insurance (PMI) which is a sunk cost, your BMR payments actually purchase Bitcoin. This builds a "secondary equity engine" that can retire your 30-year mortgage in a fraction of the time.
What are the requirements for BMR?
- Minimum Contribution: 20% of the property’s appraised value in BTC.
- Waiver Threshold: If you contribute 30%, the monthly BMR payment is waived entirely.
- Credit Checks: Unlike the SRM, the BMR utilizes credit scores to reward borrowers with rates as low as $10/month per $100k borrowed.
Does Peoples Reserve offer second-position loans (Home Equity Lines)?
No. We do not offer second-position loans. To use our products, you must complete a full refinancing of your existing mortgage.
How does the PRN token affect my refinance?
Higher PRN loyalty tiers unlock significant benefits, including:
- Lower interest rates.
- Discounted closing costs.
- Priority waitlist access.