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should I need a title insurace at the time of refinance?

Posted on: 17th Nov, 2006 11:56 am
is it needed to get a new title insurance policy when I refinance-Mike Davidson

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.

Posted on: 17th Nov, 2006 11:59 am

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.
Posted on: 17th Nov, 2006 12:19 pm
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.

Posted on: 17th Nov, 2006 12:23 pm
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.
Posted on: 17th Nov, 2006 05:16 pm
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