Refinancing is the process of obtaining a new mortgage in an effort to reduce monthly payments, lower your interest rates, take cash out of your home for large purchases, or change mortgage companies.  Most people refinance when they have equity in their home, which is the difference between the amount owed to the mortgage company and the appraised value of the home.


What are the Advantages of Refinancing? 

One of the main advantages of refinancing, regardless of equity, is reducing the interest rate or eliminating private mortgage insurance (PMI). Often, as people work through their careers and continue to make more they are able to pay all their bills and thus increase their credit score.  With this increase in credit worthiness comes the ability to procure loans at lower rates, and therefore many people refinance with their mortgage companies for this reason.  A lower interest rate can have a profound effect on monthly payments, potentially saving you hundreds of dollars a year. 

Subordination Instructions

NHSIE will permit the subordination of existing NHSIE junior loans if homeowners meet certain eligibility requirements.  By permitting subordination, NHSIE will allow existing homeowners the opportunity to take advantage of refinancing their existing first mortgage, without being forced to pay off their existing NHSIE junior loan(s)

Eligible NHSIE junior loans include the following:

  • NHSIE CalHome Mortgage Assistance Program
  • NHSIE CalHome Owner Occupied Rehabilitation
  • NHSIE 555 Loan