Weiss Ratings, Florida-based ratings and research business, has issued a warning about the hazards of crypto mortgages in the present US economic situation.

Milo, a Miami-based digital banking firm that offers 30-year mortgages backed by Bitcoin (BTC), Ethereum (ETH), or stablecoins as collateral, received special attention from the company. There are no down payments required, and the company's lending rates range from 3.95 per cent to 5.95 per cent.

https://twitter.com/eBargainsToday/status/1521350734188466176

Weiss analyst Jon D. Markman warned against such mortgages in a May 3 research, citing the dismal performance of equities and cryptocurrency this year, a housing bubble in the United States, rising interest rates, and the Federal Reserve's forthcoming policy adjustments reasons.

"The product seems to be like a win-win, assuming real estate and crypto prices keep rising, except there are signs both bets are unlikely to be winners in the near term. Bitcoin is off by 40% since it reached $66,000 in November 2021."

Markman did say that not all crypto risk is adverse, but it might be in the real estate industry, before adding that "no matter what the markets do, the opportunity to prosper in cryptocurrency is real."

Many cryptocurrency and stock investors have been fearful about the market ramifications of significant interest rate hikes this year as the Federal Reserve attempts to rein in inflation.

According to the mortgage terms and conditions, the price of the collateralized crypto assets "may decrease in value with no effect as long as it does not dip to 35 per cent of the total loan amount," according to the mortgage terms and conditions. Users must top up their collateral within 48 hours after attaining the required percentage to prevent liquidation. Stablecoins, on the other hand, might be used in times of market turbulence.
Milo raised $17 million in Series A funding in March and expected to expand its mortgage offerings to meet increased demand and increase its workforce.

Weiss Ratings Releases a Crypto Mortgage Risk Alert

Weiss Ratings, Florida-based ratings and research business, has issued a warning about the hazards of crypto mortgages in the present US economic situation.

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

Weiss Ratings Releases a Crypto Mortgage Risk Alert

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