BTCJam Launches a New Feature: Refinancing Loans!

Howdy Jammers!

We’re really excited to tell you about a new feature developed by our hard working Jam Engineers.  Without any further ado, we’d like to announce that BTCJam users will now be able to Refinance their loans — right here on BTCJam!

Having trouble paying back a loan?  Refinance your loan on BTCJam today!

Q: What is refinancing?

A: Refinancing is a way for borrowers to restructure their current debt under different terms.

Q: How does BTCJam’s refinancing work?  

A: If the borrower chooses to refinance a loan, the new loan amount will be set to guarantee the repayment of this loan.  A refinance loan is a special type of loan that cannot be activated by the borrower.  The funds raised for this loan are sent directly to the investors of the previous loan.

Q: Can I refinance my loan?

A: Yes, any borrower with an outstanding loan can attempt to refinance their loan.

Q: What do you mean attempt?

A: The refinancing process is much like the process for funding your original loan.  Investors will decide whether or not to fund your refinancing based upon the completeness of your profile, the diligence you show in describing your loan, how you intend to pay it back, the reasons for your refinancing, and of course, our proprietary credit score.

Q:  What happens if my refinancing attempt is successful?

A:  If your refinancing loan reaches a point when the sum of investments is enough to repay the original loan, your loan will automatically activate and the investors of your previous loan will be repaid.

Q: What happens if my refinancing attempt is unsuccessful?

A: You can attempt to refinance again, perhaps with more favorable rates for investors, but if the investors choose not to fund you two times in a row, perhaps it’s time to continue paying off the original loan.

Thanks for reading about our new feature, Refinancing Loans on BTCJam.  We hope you like it.  If you have any questions or suggestions for a new feature or anything about BTCJam, we’d love to hear from you at support@BTCJam.com.

Until Next Time….    Keep on Jamming!

Having trouble paying back your debt?  Refinance your loan today with BTCJam!

6 thoughts on “BTCJam Launches a New Feature: Refinancing Loans!

  1. Does this work as an actual refinance?

    In standard loans, interest is determined based on the interest accumulated at the time of payment. Thus, early payment – whether by the borrower or because of a refinance – pays off the principal and any interest accumulated at that point in time. Thus, refinancing makes sense financially because you save money as a borrower.

    In BTCJam loans, the interest is set from the moment a borrower takes out a loan – even if they repay it the next day. It is not considered repaid until the principal and all interest that would have accumulated over the life of the loan is paid – regardless of early payment.

    With these refinance loans, is it paying back the original BTCJam loan with the current interest calculation included, or only the principal and accumulated interest? Because if it is for the current format, then it would never make sense to refinance as a way to save money – it will always be more expensive because paying off the original loan early costs the same no matter what, plus the new interest on the new loan has to be considered. The only case where it would matter is for a longer term loan to extend the payments out for a cash-flow issue. In this case, why can’t the borrower just do that with a second loan request in the existing system?

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    • hello admin ,, ,, i want to ask if I activate ,,
      refinance loan that exceeds the amount of the
      loan and whether the excess BTC ,, it makes
      your wallet or just be a debt for a loan ??
      information please thanks

      Like

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