FT: Bitcoin-backed mortgages from Better and Coinbase carry double-loan risk
- —A $130,000 loan at 7.40% costs about $900 a month, roughly $194,000 in interest over 30 years
- —Collateral is $325,000 of Bitcoin, 2.5 times the down-payment loan
- —Pre-applications reached $360 million, above the $260 million projection
- —After 60 days of delinquency Better may sell the Bitcoin; foreclosure can start at day 180
Why it matters: The product lets buyers keep Bitcoin exposure instead of selling, but shifts liquidity risk to borrowers and depends on Better's ability to return the coins.
Source: Coindoo