> For the complete documentation index, see [llms.txt](https://mortgagefi-docs.gitbook.io/mortgagefi-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://mortgagefi-docs.gitbook.io/mortgagefi-documentation/how-mortgagefi-works/mortgage-borrowers.md).
# Mortgage borrowers
Borrowers begin by selecting the ERC20 token they wish to acquire, such as Bitcoin or Ethereum. They then make a down payment as low as 2% of the total asset value they intend to borrow. The borrower receives the full amount of the borrowed asset, with the price locked in at the time of the loan’s initiation.
Repayments are made in fixed USD amounts over the chosen loan term, providing a predictable payment schedule. We strongly advise users repay their loans once a month to avoid missing a payment.
Payments are due a maximum of 45 days from the last time the outstanding balance was settled. Each time a user settles the outstanding amount showing in their mortgage dashboard a 45 day timer resets.\
\
The amount due gradually increases from $0 to the maximum instalment amount for 45 days.\
\
Mortgaged capital is held on behalf of the user by the smart contract and is released to borrowers upon finalizing (fully repaying) their loan.
Borrowers also have the flexibility to repay their loan early using the [early repayment feature](/mortgagefi-documentation/how-mortgagefi-works/mortgage-borrowers/early-repayment-feature-erf.md) at any time by paying a 2% early repayment fee, allowing them to capitalize on market movements or personal financial changes. This early repayment fee is charged as 2%\* of the outstanding capital.
Each loan is represented by a unique NFT, which serves as proof of the loan and can be transferred between wallets or traded on secondary markets. This feature adds liquidity to the loan obligations and offers borrowers additional flexibility in managing their financial commitments. \
\
\
\*Early repayment fees have risen from 1-2% since the introduction of Refinancing vaults in May 2025. If your mortgage was created prior to this the fee will remain at 1%.\
\
[Introduction to Mortgage product](/mortgagefi-documentation/introduction/mortgage-product.md)\
[Getting started](/mortgagefi-documentation/getting-started/components/mortgage-vaults.md)\
[In depth](/mortgagefi-documentation/getting-started/components/mortgage-vaults.md)\
[Dashboard](/mortgagefi-documentation/how-mortgagefi-works/mortgage-borrowers/mortgage-dashboard.md)\
[Early repayment feature](/mortgagefi-documentation/how-mortgagefi-works/mortgage-borrowers/early-repayment-feature-erf.md)
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:
```
GET https://mortgagefi-docs.gitbook.io/mortgagefi-documentation/how-mortgagefi-works/mortgage-borrowers.md?ask=&goal=
```
`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.