You may generally refinance your home without being required to repay any subsidy to the City so long as your refinancing amount is less than or equal to one of the following (depending on the specific terms of your NYC Mortgage): the subsidized purchase price of your home, the current balance of your existing primary mortgage, or the appraised value of your home.
Instructions for Refinancing.
Rate & Term
A Rate & Term refinance changes the interest rate and/or term of a mortgage. HPD will issue a Subordination of NYC Mortgage or UCC-3 Amendment, as applicable. If you have a lien (home equity loan/credit line mortgage) that is in addition to the NYC mortgage and your primary mortgage that will not be paid at the proposed closing, you will not be eligible for a Subordination of Mortgage.
A Cash-Out refinance increases the amount of the existing primary mortgage, providing additional funds to the homeowner. The size of the mortgage is based on your equity in the home.
If you are selling or otherwise transferring ownership of your home, generally you will be required to repay the outstanding subsidy balance. In this case, HPD will send you a notice of Payoff of NYC Mortgage indicating the amount owed. Following our receipt of the payoff amount, we will issue a Satisfaction of NYC Mortgage or UCC-3 Amendment, as applicable. Instructions for Sale or Transfer.
If you are selling your home for a price less than or equal to the amount you paid to a purchaser who is willing to assume the subsidy balance, or you are adding, removing or changing a name on the deed, you may be eligible to receive an Assignment and Assumption Approval, which would release you from any further obligation. Homeowners who received a Homefirst, SCHAP, NHS or HIP subsidy are not eligible for assignment and assumption approval. Payoff is required upon property transfer.
In all cases of a sale or other property transfer, the new owner is subject to the same residency restrictions as the original owner, as set forth in the NYC Mortgage and deed.
If you wish to pay off the outstanding subsidy amount, HPD will send you a notice of Payoff of NYC Mortgage indicating the amount owed. Following our receipt of the payoff amount, HPD will issue a Satisfaction of NYC Mortgage or UCC-3 Amendment, as applicable. Similarly, if your mortgage has reached the maturity date and you have met all of the requirements therein, HPD will issue a Satisfaction of NYC Mortgage, which will release your lien. Instructions for Payoff / Satisfaction.