Home insurance doesn't protect your property loan
Jessica White/DC Columnist
Issue date: 11/4/07 Section: Business
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The lender's title policy is in effect until the loan is paid off. In your case, since you are refinancing, when you pay the existing loan off with the new loan, the lender's title policy you bought eight years ago will no longer be in effect, and you will have to buy a new lender's policy to cover the amount of the new mortgage. For the new loan, the lender will want to know that you have not incurred any judgments against the property in the last eight years, from such things as mechanics liens, tax liens, homeowner's association dues, or unpaid child support payments recorded against the property.
However, you will not need to buy a new owner's policy. The owner's policy you bought eight years ago will remain in effect, as long as you or your heirs have any legal interest or obligation concerning the property.
As for obtaining a new lender's policy, be sure to ask for a discounted "reissue" rate. A cheaper reissue rate is often available if you are refinancing within 10 years since you bought or last refinanced the house.
Some states set the prices for title insurance, but not all. Depending on what state the property is in, it could be worth your while to shop around for the best price. Regards,
Jessica White, also known as "Ms. Mortgage Maven," is a mortgage consultant with Tenacity Mortgage. Call or email her to discuss your home purchase or refinancing needs. She can be reached at 202-607-4449 or Jessica@msmortgagemaven.com. You can also apply online at www.msmortgagemaven.com.
However, you will not need to buy a new owner's policy. The owner's policy you bought eight years ago will remain in effect, as long as you or your heirs have any legal interest or obligation concerning the property.
As for obtaining a new lender's policy, be sure to ask for a discounted "reissue" rate. A cheaper reissue rate is often available if you are refinancing within 10 years since you bought or last refinanced the house.
Some states set the prices for title insurance, but not all. Depending on what state the property is in, it could be worth your while to shop around for the best price. Regards,
Jessica White, also known as "Ms. Mortgage Maven," is a mortgage consultant with Tenacity Mortgage. Call or email her to discuss your home purchase or refinancing needs. She can be reached at 202-607-4449 or Jessica@msmortgagemaven.com. You can also apply online at www.msmortgagemaven.com.
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