If crypto prices are higher than when you first took out your loan, you may be eligible refinance your loan to access more USD. The amount of crypto you have posted with BlockFi will stay the same, and you would be able to receive more USD for the value of crypto posted.
Example:
- If you took out a $10,000 USD, 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, you could submit a new loan application for $20,000, and the additional $10,000 would be funded directly to you!
Please note: you may only refinance if your LTV decreases 15% or more from your originating LTV (e.g. if you originated at a 50% LTV, you can refinance when your LTV drops to 35% or below). Additionally, the net new funding amount must be >$10K in order to be eligible to refinance.
How to refinance?
In order to refinance, we ask that you please submit a new loan application totaling your existing loan(s) payoff amount(s) plus any additional funds you desire. Make sure the required collateral does not exceed the existing collateral in your outstanding loan. Once signed, please submit a Support Ticket HERE and let us know that you would like to refinance and have submitted the new loan application.
Can also read more about how to refinance here.