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DOES YOUR CUSTOMER REALLY NEED TITLE INSURANCE? |
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If I purchase title insurance when I buy my home and I refinance my mortgage later, why do I need to pay for title insurance again when I know there are no problems with my title?
As mentioned previously, when you obtain a new loan, (and a refi is a new loan), the lender usually will require lender’s title insurance. Even if you recently purchased your home there are some problems that could arise with the title. For instance, you might have incurred a mechanic’s lien from a contractor who claims he/she has not been paid. Or you could have had a judgment placed on your house for unpaid taxes. The lender wants to make sure the title to the property they are financing is clear.
Also, ask if you qualify for a “reissue” or refinance rate -- a discount -- on your new lender’s title insurance. You will not need to purchase new owner's title insurance when refinancing. Owner's title insurance is purchased for a one-time fee at the original purchase and lasts as long as you or your heirs have an interest in the property.
Are all title insurance rates the same? How can I be sure I am getting the best deal?
Rates for title insurance vary from company to company and within different areas/counties of the state. All rates are filed with the State of Tennessee. And there may be variations depending on the lender you work with. Ask for a recommendation for a title company from your real estate agent, lender, friends and family to find one that others have been satisfied with. Again, if you are refinancing and purchased title insurance within the last several years, ask if there are special discount rates available.
For more information and a Tennessee Land Title Association Member in your area, please visit www.tnlta.org
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