> For the complete documentation index, see [llms.txt](https://docs.jpegd.io/jpegd-dao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.jpegd.io/jpegd-dao/peer-2-peer-lending/for-borrowers/how-does-refinancing-work.md).

# How Does Refinancing Work

Refinancing allows lenders to offer you better terms on your loan while it is active.

To take over your loan, a lender needs to offer at least:

* A lower APR (minimum 1% lower)
* A longer duration (optional)