Lower interest rates have motivated you to refinance your home loan. The lower rate may save you a tremendous amount of money over the life of the loan, but you should also expect to pay the lender the typical closing costs associated with any new loan, including service fees, points, title insurance protection and other expenses.
To the lender, a refinance loan is no different than any other home loan. So, your lender will want to insure that their new loan is protected by title insurance, just as the original lender required. Therefore, when you refinance you are buying a title policy to protect your lender.
Most lenders generate loans and then immediately sell those loans to secondary market investors, such as FannieMae.
FannieMae, in order to protect its security interest in the loan, requires title insurance coverage. Even those lenders who keep original loans in their portfolio are wise to get a lenders policy to protect their investment against title related defects.
Perhaps. Who pays for the lender’s policy on a purchase loan varies regionally and by the terms of individual contracts.
However, even if you did buy a lender’s policy when you purchased your home, the lender’s policy remains in force only during the life of the loan that was insured. If you refinance, the old loan is paid off (the “life” of the loan expires) and a new loan is issued for which the lender will require a new title insurance policy.
When you bought your home, you purchased a Homeowners title policy. The Homeowners’ policy stays in force as long as you or your heirs own the home. When you refinance, your lender will often require that you purchase a new lender’s policy to protect their new security interest in the property. Thus, you are buying a policy to protect your lender, not a new Homeowner’s policy.
Since the time that the original loan was made, you may have taken out a second trust deed on the house or had mechanic’s liens, child support liens or legal judgments recorded against you - events that could result in serious financial losses to an unprotected lender. Regardless if it has been only 6 months or less since you purchased or refinanced your home, a myriad of title defects could have occurred. While you may not have any title defects, many Homeowners do. The only way for a lender to adequately protect itself is to get a new lender’s policy each time you purchase or refinance your home.
Yes. Title companies offer a refinance transaction discount or a short-term rate. Discounts may also be available if you use the same lender for your refinance loan and your original loan. Be sure to ask your title company how they can save you money.
Article by CLTA
Back to Table of ContentsThank you for visiting my site Highlandscountyhomes.com. If this is your first visit, take your time and look around at some of the great affordable and attractive homes. Highlands County has some of the most spectacular lakefront homes for sale. Highlands County Homes allows you to search directly from the MLS, the same syatem that realtors use where you get a true real time list of active properties. When you search on Trulia and Zillow and others, they are not linked to the MLS so many times you are wasting time looking at home that are no longer on the market. Through this site you can customize your search and find exactly what you want at the price you want and know it is active.
Waterfront Homes and Canal Homes can be found on over 25 lakes in Highlands County. Highlands County is called Highlands because it is the highest point above sea level in Florida. Lake Placid is like a paradise of rolling hills, curvy roads and spectacular lakes with sweaping water views. Sebring is located directly in the middle of Highlands County with Lake Placid to the South and Avon Park to the North.
I have plenty of information and resources available to you. If you are a return visitor, thank you. I would love to hear from you and tell you how I can serve all your real estate needs.
Thank you for visiting my site Highlandscountyhomes.com. If this is your first visit, take your time and look around at some of the great affordable and attractive homes. Highlands County has some of the most spectacular lakefront homes for sale. Highlands County Homes allows you to search directly from the MLS, the same syatem that realtors use where you get a true real time list of active properties. When you search on Trulia and Zillow and others, they are not linked to the MLS so many times you are wasting time looking at home that are no longer on the market. Through this site you can customize your search and find exactly what you want at the price you want and know it is active.
Waterfront Homes and Canal Homes can be found on over 25 lakes in Highlands County. Highlands County is called Highlands because it is the highest point above sea level in Florida. Lake Placid is like a paradise of rolling hills, curvy roads and spectacular lakes with sweaping water views. Sebring is located directly in the middle of Highlands County with Lake Placid to the South and Avon Park to the North.
I have plenty of information and resources available to you. If you are a return visitor, thank you. I would love to hear from you and tell you how I can serve all your real estate needs.
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