At any point in time, you have the option to refinance your loan. You may want to refinance in the following scenarios:
- You want more time to pay off your loan:
- By refinancing your loan, you can extend the maturity a new 12 months and move your loan’s payoff date back in time.
- You want to draw more cash because the value of your crypto has increased:
- If crypto prices are higher than when you first took out your loan, you can refinance you loan to access more USD. The amount of crypto you have posted with BlockFi will stay the same, and you will receive more USD for the value of crypto posted.
- For example, if you took out a $10,000, 50% LTV loan when the price of BTC was $6,000 and the price of BTC doubled to $12,000, you would be able to double the size of your loan to $20,000. In this instance, $10,000 would be used to pay off your old loan (including any fees and interest owed) and the remaining $10,000 would be funded directly to you.
- You want to release some of your crypto because the value of your crypto has increased:
- If your LTV is below 25% we can send any excess crypto back to you with no refinancing needed. We can release enough crypto move your loan up to a 25% LTV with no new loan documents needed.
- Your excess collateral can either be sent to you or deposited into a BlockFi Interest Account to earn interest.
- Note that your excess collateral must be at least 1 BTC or 25 ETH. This does not apply to loans that originated at a 20% LTV.
Below are the steps to refinance:
- Process: Apply for a new loan based on the amount of crypto you have posted with us. Email firstname.lastname@example.org and let us know that you would like to use the proceeds of your new loan to repay your existing loan. We will be able to make any necessary changes to your loan offer on our end.