Many homeowners wonder if they need new title insurance when refinancing. The short answer: your lender will require a new policy. Here's what you should know about title insurance and refinances.
Refinancing: The Title Question You Should Ask Your Lender
When you refinance your mortgage, two questions always come up:
- Does my lender require new title insurance?
- Do I need new owner's title insurance?
Short answers: yes and probably not — but let's walk through why.
ℹ️ Quick Answer: Refinance Title Insurance
Lender's title insurance: YES — required by virtually every lender on every refinance. Your existing owner's title insurance: NO — it stays in force for as long as you own the property, regardless of how many times you refinance. Reissue rate: Ask for it — you may qualify for 30–40% off the lender's premium.
Lender's Title Insurance Is Required (Almost Always)
When you refinance, your new lender is extending you a new loan. They want protection for their new lien position, just like your original lender did.
Here's the important distinction: lender's title insurance protects the lender, not you. The original lender's policy does not transfer to the new lender. The new lender gets a new policy.
This is why you pay for lender's title insurance again when you refinance. It's for a new loan with a new lender.
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