How do You Keep Your Mortgage Credit Certificate in Place When Refinancing?

Home / Blog / How do You Keep Your Mortgage Credit Certificate in Place When Refinancing?

How do You Keep Your Mortgage Credit Certificate in Place When Refinancing?

If you've been considering a refinance on your home, but you're worried about losing your Mortgage Credit Certificate (MCC), there's good news: It is possible to refinance your home while keeping your Mortgage Credit Certificate in place. However, there are a few things you need to be aware of to make the process go smoothly. 

You Don't Have to Lose Out

Some people are concerned that refinancing their home will mean giving up their Mortgage Credit Certificate. This is not usually the case. When you apply for the MCC program from the very beginning, you are eligible to continue receiving your certificate for the period equal to your original loan. Thus, if you refinance your home and extend the payment out several more years, you will stop receiving the credit in those final years. However, if you choose to refinance to a shorter payment term, then you can receive the credit all the way up until the house is paid off. 

First Time Refinancing

An important caveat to this program is that an MCC can only be issued for first time refinances. If you have refinanced your home multiple times, you will not be able to obtain a new MCC. Keep this in mind down the road if you are considering refinancing a second time. Also keep in mind that your credit amount is capped based on the amount that you originally qualified for, so you cannot over-finance your home and receive a credit on the over payment. Your credit will only be based on the outstanding principal balance at the time of the refinance. 

Choosing a Lender for Your Refinance

The first thing you need to keep in mind when refinancing is which lender you are going to turn to. The mortgage certificate program requires that all lenders are approved by the Housing Finance Agency (HFA) and have received training on the MCC program to be eligible. Thus, if you choose to refinance with a lender outside of the program you would no longer be eligible for your certificate. Fortunately, you can turn to any of the approved lenders to find competitive refinance rates. 

Updating Your Certificate

The other thing you need to keep in mind is that your Mortgage Credit Certificate is issued based on information from your lender about your interest rate and payments. Since your MCC rate is a percentage of your interest, your lender will need to contact CalHFA and give them the information necessary to update your certificate. If the purpose of your refinance was to reduce your interest rate, you may notice that your MCC also drops in dollar amount to match the same percentage as before. The MCC does not guarantee you a specific dollar amount of credit each year. 

Just like before, you will not be receiving monthly payments, so you will see the change in your MCC amount at the end of the year when it is time to file your taxes, but you probably won't notice a huge difference month to month. 

When to Update Your Certificate

Ideally, your refinance lender will work with you to get your Mortgage Credit Certificate updated as soon as possible after your refinance is completed. This is especially important if you choose to refinance your home with a different company than the one you originally financed your home with. Technically speaking, most of this process is done by your lender, not by you. However, you may have to provide some paperwork regarding your original certificate and loan in order to prove that the MCC was lawfully issued in the first place. 

Lenders who regularly work with the Mortgage Credit Certificate program, like Ubermortgage, will be able to guide you through this process quickly and easily. They will also be able to tell you whether or not your property continues to be eligible for the credit when you go to refinance. The most important thing to remember is that you don't have to give up your credit just because you want to refinance. As long as it is your first time refinancing, there's a good chance you can continue receiving credits through approved lenders like Ubermortgage


fc63f7b6 456f 49ac 80d0 c4d0c106a9ba 92dfff66 ddde 4d6e 8931 90f89ce81dc2 7fde3b64 24ac 4471 8d58 6193edb6d566 9b78e5ec 2764 4f68 ae4f 6f3132d2496b 9cf2481a bbfd 4cdf b912 1c8ce2eab280 d2824418 2867 477a b5b1 8906e4d78db1 80ad8630 9e46 4000 8874 63020d9c0976 aa623489 1fc0 4f85 88a9 907572f8f6ae 14c752b1 c348 4a12 9592 4a26546e6a24 7b357d31 49ce 4a65 bfd7 d03fcdb66664 f3ccb64d e5a7 40b4 9401 06337238d306 68b37ccd bfb6 424a b83d b7953d1f1132 236f00e2 28b3 4c7d 9e6b 65eed399f39f e1045934 892e 43e0 83f7 8343b0e52114 5c55ce37 86e1 4a93 a439 2528a2c95492 7e990d52 7238 48f2 ba43 e2b6e934de3a 8f0d7217 55cc 44a2 9719 9c956de7d7c7 afa5d6db 0a6e 47c2 bb2c 0ce003239745 6af07988 470c 445e 97cf 43a65847523b 0dec9720 1f94 44ce 8b24 03c09eb9088c 7a224eea 3978 49a3 a6b1 a16b22bf7d6d 4b038461 b366 474e 98bd eaa3e79f709e ea0b3ebe e406 428e 80ef c0ddd14216fe