Profile picture for dvanliew

title insurance on refinancing. Do I need to pay for this on a straightforward refinancing

I am looking to refinance my mortgage to take advantage of current low rates. I have asked my current lender for a good faith estimate as my current mortgage is only 2 years old. I have just received estimate and it includes $2271 in charges for title services and lender's title insurance  I don't think this is reasonable.  Would appreciate other's insight into this.
  • September 29 2011 - Madison
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Answers (5)

I assume, by his astounding advice that when Brian needs new brake shoes for his car he shops around by calling different clothing stores.


in other words, the lender has nothing to do with your title fees regardless of what he put on the GFE;  just as you shopped for a mortgage lender you no doubt also shopped for a settlement provider. Call the settlement provider that you hired and ask them to confirm the charges they gave you when you shopped for them.
  • September 29 2011
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Profile picture for Chris Corica
Since your current mortgage was taken out within the past 10 years you should be eligible for the "re-issue" rate which is a discounted rate on the title insurance. Check with your lender and see if this discount applies to you. Best of luck.
  • September 29 2011
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If they listed "Owners Title Policy" that is not required or needed in my opinion. "Lenders Policy" is required.

Happy funding, Rudi
  • September 29 2011
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The good faith estimate lumps all title charges together. Ask your loan officer for a break down of the closing costs. They should be able to provide you with a fees worksheet that lists each charge individually. Then you can see how much each charge is and see if you are being charged more than normal for certain items (like title insurance)

I would also get another estimate from a competing lender. After all, when banks compete, you win.

Go Badgers!
  • September 29 2011
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Lenders title insurance is always required.  Also, the lenders attorney fee is most likely included in that figure.  How much is your loan amount and how much out of the 2,271 is just title insurance?
  • September 29 2011
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