Zillow Advice: Refinance - refinancing home bought 4yrs ago, why am i required to pay$875. title ins to the same title Co.

char,The others are correct. ...

Sun, 21 Jun 2009 16:49:00 GMT

char,

The others are correct. LC... nice job :). We have a tendency to "justify" the product and that is true. The new policy is for the Lender. The new REFI "killed" or paid off the old loan and as it was/gets satisfied, the 1st lender's title policy went with it, but remember, there are people working to handle the closing and disbursement of the new loan items, etc. and they do not work for fre. Yes. there are other "junk fees" listed, but the bottom line is that they get bits and pieces of all the fees as the office's gross revenue and employ/pay people from it. So, Yes, it is a Tiel policy on name, but it is the entire service package and employment of those people.

Consistantly great advice ...

Sun, 21 Jun 2009 15:32:00 GMT

Consistantly great advice Lewis. Thumbs up!

Yes, you do have to pay for ...

Sun, 21 Jun 2009 14:04:00 GMT

Yes, you do have to pay for title insurance again. However, you won't have to pay as much as when you first bought the house. You have to pay only for the lender, not for yourself.

Line 1101 is the closing/escrow fee. Line 1105 is a document preparation fee. Line 1108 is for title insurance for the title policy you have to pay for the lender. Line 1111 apparently is an add on as I don't know what that is for. Some companies may choose to waive charges for abstract or title search. Others may not charge it at all. However, most likely you will have to pay for the title search and/or abstract as well as the title insurance. It's best to double check to be sure.

You have the right to use whatever title company you so choose. No one can force you into using any particular title company. If they do, then it's a violation of the Real Estate Settlement Procedures Act (RESPA). The required service provider form is mandated by law. Lenders have to disclose who they typically use in a transaction. You are not bound to use any of those that are listed.

Generally, it's best to use the same title company that you used last time for a refinance. Usually, they will waive or reduce certain fees becuase 1) you are a repeat customer; and 2) they have less work to do as they already have done the bulk of the work previously. Typically, they have to go back only to their last title search on your property, thus making it less costly for you.

thank you for that reply, ...

Sat, 20 Jun 2009 13:56:00 GMT

thank you for that reply, if i under stand you correctly the amount $875 listed on the good faith est. sect. 1100 line 1108 is just for the insurance which i shouldn't have to buy again. There are no charges listed on 1102 for abstract or title search?, the only other line items filled in are 1101, 1105, and 1111 which i understand. Can i request to use my previous title co. or, do i have to use one of the 3 they list on the required service provider form?

When you are refinancing ...

Sat, 20 Jun 2009 11:27:00 GMT

When you are refinancing a mortgage, the new lender has to be sure that your home is free and clear of any encumberances (excepting your present mortgage of course). You're paying for a title search and for title insurance for the new lender. This would be true even if you are using the same lender. Sometimes you can get a break in fees by using the same title insurance company as they did the previous title search. Be sure to ask for it - it won't automatically be given to you. You already have title insurance from when you bought your home, and do not need to purchase another policy for yourself.