Why Do I Need Title Insurance When I Refinance?

The policy purchased on refinance covers the new lender, not you. Your title insurance (assuming you got an owner’s policy when you purchased) remains intact unless you have done something to end the coverage.

Two types of Policies are typically issued on residential properties: Mortgage Policy and Owner's Policy.

Mortgage Policy covers the lender for the life of the loan. If a new loan number is issued and the current mortgage is paid off, then a new Policy is required.

The life of the loan is for as long as the LOAN is in effect.

Any time a new loan is obtained and the current loan is paid off, a new Mortgage Policy will be issued. However, the refinance rate is typically lower than the basic rate you may have paid at closing.

Owner's Policy protects your interest in the property for as long as you own the property, be that 1 year or 100. It is a one-time fee.

However, typically a mortgage policy can be assigned to another lender if the mortgage is sold or assigned on the secondary market. (Note: the loan number would be the same, only the "owner" of the mortgage has changed.)

Read more: http://wiki.answers.com/Q/Why_do_you_need_title_insurance_when_you_are_refinancing#ixzz1Xqy6OVrW
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721 Route 34, Suite 3
Matawan, NJ 07747
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  • Samah and her team at Mega Title were efficient and professional in
    handling our refinance closing. I had used them in a prior refinance
    and was so impressed with the attention to detail that I came back
    this time again. They are accomodating to your schedule, meet the
    deadlines so they don't waste your time and most of all treat you as
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    for better service - they took care of everything. Just had to show
    up and sign.
  • As a real estate attorney, I have dealt with numerous title companies.
  • I recently refinanced my home. Mega Title really made my life much easier.
  • I really appreciated the excellent service and caring attitude during my refinance.
  • I can't express how impressed I am with your customer service!

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