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.

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