Watch for the right opportunity, crunch the numbers, save more, consolidate debt or tap into your home equity with a refinance loan.
Take the final steps toward better financing and ongoing title protection by learning what you need to know about title insurance for a refinance.
Why Do I Need to Purchase a New Lender’s Policy?
The original lender’s title insurance policy protects the lender’s interest on the original loan. With the new refinanced loan, the original loan will be paid off, and the new lender will require protection of its interest for the new loan. From the lender’s standpoint, a refinanced loan is no different than any other
mortgage loan. In addition, if the loan is sold in the secondary market, investors like Fannie Mae will require the security of title insurance on the property.
Didn’t the Original Title Search Resolve Ownership Issues?
The lender needs the title examined again to make sure that no liens or judgments, such as liens filed by contractors, child support liens, legal judgments, or other encumbrances have been recorded since you purchased your home. Providing your lender with title insurance protects the lender’s security interest in your property.
Do I Also Need to Get a New Owner’s Title Policy?
No. Your original owner’s title insurance policy that you received when you bought your home protects your ownership rights for as long as you own your property.