Published by: Daisy Gregg
Why Do I Need a New Lender’s Policy?
The original lender’s title insurance policy protects the lender’s interest on the original loan. With the new refinanced loan, the original loan will be paid off, and the lender will require protection of its interest for the new loan. From the lender’s standpoint, a refinanced loan is no different than any other mortgage loan. In addition, if the loan is sold in the secondary market, investors like Fannie Mae will require the security of title insurance on the property. The good news is the consumer receives a discount on lender's policies for refinance during the first seven years of the loan. If your refinanced loan is with the same lender as your original loan, your lender may provide additional discounts. Austin Title Company will be happy to point out ways you can save on your refinance loan.
Didn’t the Original Title Search Resolve Ownership Issues?
The lender needs the title examined again to make sure that no liens or judgments, such as liens filed by contractors, child support liens or other legal judgments, have been recorded against you. Confirming the absence of these and other title defects protects the lender’s security interest in your property.
Do I Also Need to Get a New Homeowner’s Title Policy?
You’ll be glad to know that your original homeowner’s title insurance policy protects your ownership rights for as long as you and your heirs own your property. So there’s no need to get another owner’s policy on a refinance loan. If you did not get a homeowner’s title policy on your original loan, but now want the protection title insurance gives you, Austin Title can issue a homeowner’s title policy for you.
10 Reasons Why You Need Title Insurance
- Title defects are discovered by our search and examination professionals in more than 36% of all real estate transactions.
- Title insurance covers attorneys’ fees and court costs for defending your title.
- Title insurance helps speed negotiations when you’re ready to sell or obtain a loan.
- Title insurance reimburses you for the amount of your covered losses.
- Each title insurance policy we write is paid in full by the one-time premium at closing for as long as you and your heirs own the property.
- A deed or mortgage in the chain of title may be a forgery or signed by a person under age.
- A deed or mortgage may have been made by a person other than the owner, but with the same name as the owner.
- A deed or mortgage may have been procured by fraud or duress.
- Title transferred by an heir may be subject to a federal estate tax lien, or an heir or other person presumed dead may appear and recover the property or an interest.
- Claims constantly arise due to marital status and validity of divorces. Only a title insurance policy protects against claims made by non-existent or divorced “spouses.” This product is being provided as a general service to the community at large without the condition of the referral of title insurance business. Austin Title makes no express or implied warranty with respect to the information contained herein and accepts no liability for the consequences of any actions taken on the basis of said information.
Thank you Austin Title for this amazing information!!