You may now get a mortgage using cryptocurrency, but should you?

<p>Milo, if you haven't heard, is now offering the world's first cryptocurrency-backed mortgage loan.</p> <p>It's a 30-year product that allows you to use your cryptocurrency holdings (now simply Bitcoin) to buy a house. The loan is then repaid monthly in USD, Bitcoin, or a stablecoin, plus interest.</p> <p>Milo keeps your crypto in a secure location during the loan, and once the balance is repaid in full, it's freed and returned to you.</p> <p>It's an attractive proposition for crypto investors, especially when you consider that there's no requirement for a down payment, tax returns, or a credit check. Should you jump right in and join the company's rumoured long "waitlist"? Here's what you should think about first.</p> <p>What if the value of your cryptocurrency plummets?</p> <p>The most significant danger associated with these mortgages is how much the value of bitcoin can vary. Currently, the company only accepts Bitcoin, which has seen its share of price drops in recent years. In reality, Bitcoin's value has plummeted by more than 20% in just six months.</p> <p>When the value of your crypto collateral drops, it might lead to a number of consequences: For starters, it may have an impact on the interest rate on your loan. The lower the value of your home, the greater your loan-to-value ratio will be, and the higher your interest rate will be. Milo's loans are updated each year dependent on the value of the cryptocurrency.</p> <p>If your Bitcoin value falls below 65 percent of your loan amount (meaning you'll need to deposit more coin), the corporation may issue a margin call, and if it falls below 30 percent, the company may sell your assets and store the USD balance instead. Obviously, if you're looking to invest in crypto for the long run, you'll want to avoid the latter.</p> <p>Do you recall the housing bust?</p> <p>The 2007-2008 housing crisis was exacerbated by loose mortgage lending practises. Lenders gave mortgages to borrowers who were unqualified, and when property prices fell, many of these