Question:

Do I need title insurance if I am refinancing?

Answer:

Yes and no. You will need title insurance when you are refinancing, but you don't need new owner's title insurance. The lender will ask you to buy new lender title insurance policy even if you are refinancing with the same lender.

You may be eligible for a discount on the title insurance policy if you have to refinance within several years.

Why do I need new lender title insurance with a mortgage refinance?

Refinancing means that you are taking a completely new loan even if you are staying with your current lender. Whenever title issues do arise, lenders want to make sure the property has stayed clear of claims since the last policy was taken. The lender will want to renew the lender title insurance to make sure no recent title issues have arisen since the last title insurance has been issued - unpaid liens and marital claims are what lenders mostly want to avoid when they require lender title insurance for a refinance.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 3.1/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage