Posted on: 17th Nov, 2006 11:56 am
is it needed to get a new title insurance policy when I refinance-Mike Davidson
Hi,
Yes Mike it will be required, as to the lender a refinance is not different from any other home loan.
You will not be required to obtain a owner's title policy but the lender will require you to obtain a lender's policy of title insurance, naming the lender as the insured.
The reason why the lender asks for them is that a number of things may have happened to the property from the time the last title search was done. It is a assurance to the lender from the title company that everything is in order and that his loan is protected.
Colin
Yes Mike it will be required, as to the lender a refinance is not different from any other home loan.
You will not be required to obtain a owner's title policy but the lender will require you to obtain a lender's policy of title insurance, naming the lender as the insured.
The reason why the lender asks for them is that a number of things may have happened to the property from the time the last title search was done. It is a assurance to the lender from the title company that everything is in order and that his loan is protected.
Colin
Hi,
I would like to add that normally title companies offer discounts or reissue rate on policies taken out within a short period (in some cases if it is no more than six years) after the preceding policy.
I would like to add that normally title companies offer discounts or reissue rate on policies taken out within a short period (in some cases if it is no more than six years) after the preceding policy.
Hi Mike,
One other reason that lender ask for a new policy is that many mortgages are often packaged as securities & sold to investors in the secondary mortgage market.
Title insurance is the only way which provides assurance to investors and also ensures that the mortgages backing these securities are valid and enforceable.
Thanks
Blue
One other reason that lender ask for a new policy is that many mortgages are often packaged as securities & sold to investors in the secondary mortgage market.
Title insurance is the only way which provides assurance to investors and also ensures that the mortgages backing these securities are valid and enforceable.
Thanks
Blue
Thanks Colin and others for the help, I was thinking that while I got the mortgage I had the title insurance why would another would be required at the time of refinance. But I know now, thanks all.