How to Refinance Your Lantern Loan

Your one-year loan term is approaching maturity, but you're not ready to pay back the full principal. What now?

We built the Refinance feature specifically for this situation.

What is Loan Refinancing?

Refinancing allows you to extend your crypto-backed loan for an additional 12 months without closing your position or depositing additional collateral (in most cases).

Think of it as hitting the "renew" button on your loan while keeping your crypto as collateral while maintaining access to your borrowed capital.

When Should You Consider Refinancing?

Scenario 1: Your loan is approaching maturity

If your loan maturity date is coming up and you don't have the capital to pay back the full principal, refinancing lets you extend the term for another year.

Scenario 2: You want to lock in new rates

Interest rates fluctuate based on market conditions. If rates have dropped since you opened your original loan, you can refinance early to lock in the new, lower rate for another full year.

Step-by-Step Guide To Refinancing Your Loan

Check Your Eligibility

Before you can refinance, your loan must meet one key requirement: your current LTV must be at or below the maximum allowed for that asset.

For example:

• ETH, BTC, SOL: Maximum 50% LTV

• XRP, LTC: Maximum 40% LTV

• XLM, HBAR, ADA: Maximum 33% LTV

• DOGE: Maximum 25% LTV

If your LTV is higher than the maximum, you'll need to either add more collateral or pay down a portion of your loan before refinancing.

Navigate to Your Loan

Log in to your Lantern dashboard and go to your "Active Loans" tab. Click into the specific loan you want to refinance, then click "Manage."

If your loan is past maturity, you'll see a notification: "This loan is past maturity. Please pay off or refinance your loan as soon as possible to avoid having your collateral liquidated."

Review Your Refinance Terms

When you click "Refinance Loan," you'll see:

• Current loan balance (stays the same)

• Collateral amount (stays the same, unless you added more)

• Prorated interest (month-to-date interest accrued on your old loan)

• 2% upfront fee (the cost to open your new 12-month term)

• New maturity date (12 months from refinance date)

Refinancing Dates

Example:

• Original maturity date: October 15, 2025

• You refinance on September 30, 2025

• New maturity date: September 30, 2026 (12 months from refinance)

Refinancing early gives you a 12-month extension from the day you refinance.

Signing The Loan Agreement

Read through the Lending Disclosure Statement and sign the document after you are done.

Complete Your Refinance Payment

You'll need to pay two fees to complete your refinance:

1. Prorated interest: Any interest accrued on your old loan since your last payment

2. 2% upfront fee: The origination fee for your new 12-month term

Once you make this payment, your loan is automatically refinanced. Your old loan closes automatically, and a new loan opens with a fresh 12-month term.

What If My LTV Is Too High?

If your loan-to-value ratio exceeds the platform maximum, you'll see a message:

"Please add more collateral to refinance. Max LTV: [X]%"

You have two options:

Option 1: Add More Collateral

Click "Add Collateral" and deposit enough crypto to bring your LTV below the maximum threshold.

Option 2: Pay Down Your Loan

Make a principal payment to reduce your loan balance, which automatically lowers your LTV ratio.

Key Benefits of Refinancing

No Need to Sell Your Crypto

Keep your position intact while extending your loan term. This is especially valuable during bull markets when your crypto is appreciating.

Lock in Lower Rates Early

If interest rates drop, you can refinance before maturity to secure the new rate for another full year.

Maintain Your Tax Strategy

By refinancing instead of selling, you avoid triggering a taxable event while maintaining access to liquidity.

Simple, Fast Process

Unlike traditional refinancing (which often requires new applications, credit checks, and waiting periods), crypto loan refinancing happens in minutes through your dashboard.

Important Considerations

There's No Prepayment Penalty

You can refinance at any time before or after maturity without penalties. You only pay interest up to the point you refinance.

Your Old Loan Closes Automatically

When you complete a refinance, your original loan closes, and a new loan opens. You can view your closed loans in the "Closed Loans" section of your dashboard.

Why Lantern Built This Feature

Most crypto borrowers aren't looking for short-term loans but building long-term wealth. They want to keep their crypto exposure while accessing the capital they need for opportunities, expenses, or portfolio rebalancing.

Traditional refinancing requires new applications, credit checks, and lengthy approval processes. We built our refinance feature to work the way crypto borrowers actually think: fast, transparent, and straightforward.

Questions about refinancing your loan?

Our team is here to help. Text us at (415) 365-0100 or log into your dashboard to explore the refinance option.

This content is for educational purposes only and does not constitute financial advice. Always consult with your financial advisor before making lending decisions.