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Answers (9)
Best Answer
- Rob Cochems
- Contributions:3523
refi,
Without ordering title, a lender would not have any way of knowing if your property has any additional liens on it since you purchased the home 8 years ago. If you were lending someone thousands of dollars using a house as collateral, wouldn't you make sure you were in the proper position to insure you are paid back or at least reasonably protected?
Without ordering title, a lender would not have any way of knowing if your property has any additional liens on it since you purchased the home 8 years ago. If you were lending someone thousands of dollars using a house as collateral, wouldn't you make sure you were in the proper position to insure you are paid back or at least reasonably protected?
- Jeff Cutler, "LENDING PROFESSIONAL"
- Contributions:30
Title insurance protects the lender each time a new loan is made. If you close with the same attorney or title company you can often get re-issue rates so that money you spent the first time is not totally lost. Lender's title insurance is what you are buying for to protect the lender's lien position. Just in case something got missed in the title search or there is a lien that hasn't made it onto title yet. Let's say you just closed a loan a week ago and now you go to close another one. It's not likely that the one from a week ago would show up on title and now the new one just became subordinate. Owner's title is completely different and protects YOU against any liens that you didn't know about when you bought the home. That only has to be purchased one time. Lender's title insurance gets purchased again, and again every time you refi your 1st mortgage. Some second mortgage companies, if there are any of them left, don't require title insurance, especially for loans under $100,000.
Best regards
title insurance protects the interests of the new lien holder. Check to see if your broker/lender can provide services through somewhere that if you provide a copy of the original policy you can get a discounted rate.
- Nathan Wolf, "natewolf"
- Contributions:1825
Title insurance is a policy based on the history up to the date of your previous closing. Meaning, at the time of your closing 8 years ago, the Title Insurance Company insured the fact that there were no issues such as liens, taxes, judgements, etc. assigned to the property.
However, over the past 8 years, there may have been liens, taxes, judgements, etc. which have encumbered the property-- and hopefully there have not been... But your refinance lender wants to make certain their not lending money on a property that is encumbered-- so you therefore will need title insurance.
However, over the past 8 years, there may have been liens, taxes, judgements, etc. which have encumbered the property-- and hopefully there have not been... But your refinance lender wants to make certain their not lending money on a property that is encumbered-- so you therefore will need title insurance.
- Clay Branch, "Georgia Loans"
- Contributions:7839
refimitchhouse, i agree with all here on a lenders title policy. If you paid for an Owners Title policy when you bought your home , you do not have to pay that again. It is good for however long you own the home.
Ashley, please don't plagiarize: http://www.ppoli.com/faq.htm
If you are going to copy and paste your answers at least cite the source.
If you are going to copy and paste your answers at least cite the source.
A lender goes to great lengths to minimize the risk of lending money for the purchase of real estate.
First, credit is checked as an indication of the borrower's ability to repay the loan. Then, the lender seeks assurance that the quality of the title to the property to be acquired and which will be pledged as security for the loan is satisfactory. The lender does this by obtaining a loan policy of title insurance. The loan policy protects the lender against loss due to unknown title defects. It also protects the lender's interest from certain matters which may exist, but may not be known at the time of the sale.
First, credit is checked as an indication of the borrower's ability to repay the loan. Then, the lender seeks assurance that the quality of the title to the property to be acquired and which will be pledged as security for the loan is satisfactory. The lender does this by obtaining a loan policy of title insurance. The loan policy protects the lender against loss due to unknown title defects. It also protects the lender's interest from certain matters which may exist, but may not be known at the time of the sale.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3428
The insurance is a guarantee to the new lender that their loan will be in first position for payback in the event of default or sale of the property.
Since you have not been titled insured for 8 years, the title company will search your name (and anyone else who might have been on title during that period) and your address to make sure no other liens have been attached during at that time (or have the possibility for attachment).
Should the title company make a mistake and another lien get priority in a future transaction, the lender has a remedy to recover their investment.
Since you have not been titled insured for 8 years, the title company will search your name (and anyone else who might have been on title during that period) and your address to make sure no other liens have been attached during at that time (or have the possibility for attachment).
Should the title company make a mistake and another lien get priority in a future transaction, the lender has a remedy to recover their investment.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
Hi Refi,
Unfortunately title insurance in not transferable, it is lender specific. You have to get new title insurance everytime you refinance the property, regardless if you did it 3 times in one year. Unfortunately, since, from my what I gather, you have not refi'd in the last 8 years, you will most likely not get a reissue rate (a fancy word for slightly discounty title insurance). Most lenders will only give you a reissue rate if you purchased or refinanced the property within 5 years.
Unfortunately title insurance in not transferable, it is lender specific. You have to get new title insurance everytime you refinance the property, regardless if you did it 3 times in one year. Unfortunately, since, from my what I gather, you have not refi'd in the last 8 years, you will most likely not get a reissue rate (a fancy word for slightly discounty title insurance). Most lenders will only give you a reissue rate if you purchased or refinanced the property within 5 years.
Why do I need Title Ins. on a Refi. I did that when i purchased the home 8 yrs ago?
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