If the value of your collateral has increased, such that your loan LTV is below the Collateral release threshold (also the "upsize" threshold on your dashboard), you can upsize your loan to bring the LTV back to the maximum allowed LTV amount.
For instance, if you have a Bitcoin Loan below 50% LTV, you can upsize your loan amount back to 60% by drawing additional cash.
How do I upsize my loan?
Upsizing your loan takes just a few clicks. Simply navigate to your dashboard and select "Upsize my Loan". If applicable, additional information on why your loan is not currently eligible for upsizing is available in this card.
You will then be able to configure the upsize similarly to how you configured your original loan. The "What is your desired new loan amount" will automatically populate with the largest possible new loan size. The incremental loan amount will be displayed on the right-hand side.
Common questions
How is the maximum term length decided for the upsized loan?
Upsizing effectively works to access more cash during the duration of the original loan you took out. As such, the duration for the new loan is capped to be inline with the maturity date of your original loan.
An example is as follows:
If you originally took out a 12 month loan and decide to upsize it halfway through, you're eligible for up to a 6 month duration on the new loan. If you upsize several times, we use the original maturity (also called end date) of your first loan to determine the duration of the upsized loan each time. That ensures that it effectively works like a line of credit you can tap into as you wish during the year.
If you want to extend your loan beyond the original duration, this can be facilitated with a roll-over. Roll-overs are typically enabled in the last 3 months of your loan, and then you have the opportunity to set a maturity date in line with our max loan durations, typically 24 months. Once a loan gets rolled over, the maturity date effectively "resets" and further upsizes are capped by the new end date of the roll-over loan. For more information see our help center article on how to do this.
How does my outstanding interest get handled?
If you have not paid the monthly payment yet or if you have paid less than the pro-rated amount due, then Arch can deduct the remaining monthly payment amount due from the loan disbursement.
If you have paid more than the pro-rated amount, the excess amount will be credited against your first statement on the upsized loan.
Note that once you upsize your loan, you will now have statements due on that date every month going forward. For example, if your initial loan had a statement due on the 20th of every month and you decide to upsize on the 15th, then you will now have your payments due on the 15th of every month thereafter.
An example is as follows:
You’ve taken out an interest-only $100,000 loan on October 31st, 2024 at a 15% interest rate. As a result, on the last day of every month, you owe $1,250. The price of BTC goes up and you decide to upsize on Nov 15th, 2024.
Your monthly payment of $1,250 is due on Nov 30th, but instead of paying the full amount you will only need to pay half of it. If you have not paid your interest, it will be deducted from your upsized disbursement. If you have already paid the full $1,250, then the extra $625 will be credited to your first statement on the loan upsize.
Given the upsize has occurred on Nov 15th, your monthly interest payment on the upsized loan amount will be due on the 15th of every month going forward.
How does the origination fee get calculated?
In the case of upsized loans, Arch will only ever charge an origination fee on the additional loan amount you request. Any principal you had outstanding on the existing loan will not be part of this calculation. Additionally, given the duration logic described earlier, the origination fee gets pro-rated if the duration remaining is less than 1 year. For an upsized loan with a 4 month term, the origination fee would be 1/3 of the regular origination fee, and only charged on the incremental amount.
What happens with my AutoPay?
When you upsize a loan we turn off autopay on the old loan since it's considered to be paid off. Once you've created the new loan you can immediately reconfigure autopay for it.