Crypto Montages - Shaping The Housing Markets?

The world is watching the financial sectors change form and embrace great developments with cryptocurrencies, not only has the real estate industry shown great interest in on-chain housing tools for business, that's talking about NFTs and how the block representation of physically traded properties have had great exposure impact on the running markets, the financial sector has been one not left out on this.

What are Montages?

For starters, it's crazy to even believe such tools exist in the financial markets because usually, one has to already own an asset to present as collateral for the size of loans taken, but with montages, it's different. A montage is more like a loan, collected to either maintain or purchase a home, or probably real estate. The twist here is that unlike regular loans where other assets are presented as collaterals, with montages, the asset being acquired or maintained becomes the collateral.

This creates an atmosphere where a 30 year dream house is acquired in 10 minutes, but however, as much as great as that sounds, only hop for it if you agree to spend the rest of your life paying off debts. That said, the growing industry is adjusting to new space innovations and currently, you can't talk innovations and not talk crypto!

Crypto Montages.

Milo is taking away the montage rule of having the asset in mention to be the collateral, and moving towards a new space of financing. This is beneficial in many ways in as much as it's risky as a loan.

What we're looking at is a total house financing unlike traditional patterns when it comes to montages. When looking away from these long establishments and looking into crypto montages, we're looking at tools eradicating the requirements that come with it, that includes credit scores and down payments.

In order to qualify for a montage, you must first of all meet the requirements, one being that your credit score must look favourably to the lender, and this is determined by analysing your open account, debt ratio, previous loans and repayments patterns if any, and probably many more. Added to this, a down payment is another requirement when it comes to taking montages.

The unnoticed cost

This is like a bit of a trap fund, why? Considering that on a traditional level, montages take assets spent on as collateral, to maintain all levels of transparency and accountability and lastly ensure funds security, the borrower has to make a down payment for the asset, usually 5-20% as a security, before receiving a montage to complete purchase. It's difficult to believe one will risk losing his pre-purchase funds for a home that would then be owned by another.

The idea of montages is crazy, because you're looking at an institution giving you a loan with let's call it 5% interest for a 30 or 15 years term, crazy right? But here's the catch where I believe these companies are likely searching for incapable borrowers more than capable ones, why?

Making a 20% down payment is almost like paying an interest of 20% in advance, because if upon completion date, you could not pay off the loan, your asset bought with that loan will be acquired, whereas you paid 20% of the price money(that is not refundable), so you've literally paid them that much and own nothing!

However, crypto helps shape finance right? Well on a basic level, it's all fair because it's business, it's either profits or losses.

With Milo, there's a much preferred option when it comes to montages. Considering a speculative price predicted of crypto in coming years, it's much easier to trust the developments and expect a full blown profitable industry, this creates the urge to not only buy into the developments but to hold the way through. But hodling isn't always easy with so much else to do right?

With Milo you're looking to acquire a home without selling off your crypto, no credit score requirements and no down payments, all shits are 100% funded requiring zero $ to start with, coupled with a flexible term of up to 30 years with up to 5 million loan amount, this is a big one to be honest.

This gives a cool headed individual enough time to balance up the sheets on payments and redeem crypto. However, this in my opinion is yet to be fully crypto packed, I'm imagining building a smart contract that locks up these collaterals, directly interacting with payment addresses, reading all transactions and keeping block records of repayment patterns, this gives it a power beyond measure.

In a situation where the repayment isn't met, the funds will then be released autonomously to the company's personal address where it can either be liquidated or held, choice is theirs, or if the repayment was completed, the lender receives his crypto back to his address, and of course, having a structure where you can request a change in payment address would be handy considering that in 30 years, one could change his crypto locations.