Question:

Do I need title insurance on refinance?

Answer:

Well, when you are refinancing, you will need to pay for lender's title insurance on the refinance, as the lender wants their interest in the property to be protected. However, owner's title insurance policy is not necessary for a refinance. The one you already purchased with the original loan will suffice.

Also, when purchasing new title insurance on refinance, the title policy may be offered with discount depending on how long you have owned the property. States have different laws regarding title insurance and you will have to see whether a discount will be available in your circumstances.

Reissue Rates On Title Insurance On Refinance

Ask for title reissue rates on refinances. Sometimes the reissue rate on title policy will have a discount of 50% or more and is applicable when buying title insurance on refinance, or on a purchase of a property that has had a title search recently. Thus, the price of $1000+ for a title policy may be reduced to $500.

Mortgage lenders and brokers are aware of the reissue title discount applicable to refinances, but not all of them will point it out to consumers. Ask the lender if you are eligible for discount rates on title insurance on refinance in the state and within your case.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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