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Does refinancing the mortgage with the same bank but with a larger loan need a new title insurance?
Wiki User
∙ 8y ago
At least in Ohio, the answer is yes. A new loan policy of title insurance is needed by the lender because they want to be insured up to the new loan amount. If this refinance is within 10 years of the date you initially took out the loan, your title company may be willing to give you a "re-issue rate", which is about a 30% discount.
You need to ask your lender. If they are re-writing the existing loan, they may simply ask for upgraded Mortgage policy and have you pay the difference for the new loan amount based on the local rates/fees.
If you are paying off the existing loan, then they will require a new Mortgage Policy. You must remember that a Mortgage Policy is only good for the life of the loan, so once it is paid in full (even from a refinance with the same bank) the mortgage title policy ceases to exist.
Most states offer a refinance rate which is calculated on the new loan vs the original amount of the current loan.
The above answer is pretty thorough - just check with your lender/local title agency to find out what the fees are for your state.
Wiki User
∙ 8y ago
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What are the disadvantages of refinancing a second mortgage?
The disadvantages of refinancing a second mortgage may be that the original fees, such as appraisal fees, closing costs, attorney fees, recording fees and title insurance may have to be paid once again. It is worth remembering that the interest fees saved may far exceed the small cost of repaying refinancing fees.
Can you change the names on a mortgage loan?
Not without refinancing the existing loan and changing the names on the title to the property..
Where do you purchase title insurance?
When purchasing or refinancing a home, you will have settlement conducted by a Title Company, the title company is also the licensed title insurance provider. Up to two policies will be issued. Maryland Specific: If you are purchasing a property and taking out a loan, the lender will require a Lenders Title Insurance Policy. And you will have the option of purchasing an owners title insurance policy for your protection. If you are refinancing your current home then the lender will only require the lender's policy. In both instances the title insurance policies will be issued at the time of closing.
Can title insurance be transferred when refinancing a mortgage?
Typically, a Loan/Mortgage policy cannot be transferred to a new loan as the title coverage is unique to each loan. The mortgage coverage on a loan ends when the loan is paid off and satisfied, that is why new coverage is taken out on the new loan. However, in the case of a Mortgage Modification of an existing loan, the coverage may be extended to cover the existing loan and the new loan amount of the Modification. There would still be title charges for the changes in the Mortgage Modification coverage in most cases.
What does the term title insurance mean?
The term title insurance means insurance that covers the loss of an interest in a property due to legal defects and that is required if the property is under mortgage. Most title insurance is lender's title insurance.
What are the disadvantages of refinancing a second mortgage?
The disadvantages of refinancing a second mortgage may be that the original fees, such as appraisal fees, closing costs, attorney fees, recording fees and title insurance may have to be paid once again. It is worth remembering that the interest fees saved may far exceed the small cost of repaying refinancing fees.
Can you change the names on a mortgage loan?
Not without refinancing the existing loan and changing the names on the title to the property..
Where do you purchase title insurance?
When purchasing or refinancing a home, you will have settlement conducted by a Title Company, the title company is also the licensed title insurance provider. Up to two policies will be issued. Maryland Specific: If you are purchasing a property and taking out a loan, the lender will require a Lenders Title Insurance Policy. And you will have the option of purchasing an owners title insurance policy for your protection. If you are refinancing your current home then the lender will only require the lender's policy. In both instances the title insurance policies will be issued at the time of closing.
Can title insurance be transferred when refinancing a mortgage?
Typically, a Loan/Mortgage policy cannot be transferred to a new loan as the title coverage is unique to each loan. The mortgage coverage on a loan ends when the loan is paid off and satisfied, that is why new coverage is taken out on the new loan. However, in the case of a Mortgage Modification of an existing loan, the coverage may be extended to cover the existing loan and the new loan amount of the Modification. There would still be title charges for the changes in the Mortgage Modification coverage in most cases.
What does the term title insurance mean?
The term title insurance means insurance that covers the loss of an interest in a property due to legal defects and that is required if the property is under mortgage. Most title insurance is lender's title insurance.
What is the cost of title insurance in the state of Missouri?
It depends on the purchase price of the home, and if you are refinancing, the loan amount.
Should you buy Mortgage Title Insurance?
I think you are asking two different questions here. (1) Mortgage Insurance insures your life in order to pay off your mortgage if you die. (2) Title Insurance ensures that the company guarantees and will defend your title and deed to your house that it will stand a test in court if someone should ever challenge your ownership of the property. I do NOT recommend getting mortgage insurance. You could just as easily buy term life insurance for less money to do the same thing. I DO recommend getting title inusrance.
What is a purchase money first mortgage?
A purchase money or first mortgage is the mortgage granted in order to purchase the property. It usually indicates that the title was examined, a certification of title was issued by an attorney and a title insurance policy was written.
Where can one learn about title insurance?
You can learn about Title Insurance through your bank, if you are taking a loan out for a mortgage on your house, then you will need to make sure you have Title Insurance. You can also learn about whether you need it or want it through Title Insurance agencies that offer information about this specifically.
Does refinancing transfer title?
No
What is title insurance and do you need it when refinancing your home?
Title insurance is usually required by the lender to protect the lender against loss resulting from claims by others against your new home. In some states, attorneys offer title insurance as part of their services in examining title and providing a title opinion. The attorney's fee may include the title insurance premium. In other states, a title insurance company or title agent directly provides the title insurance. A Lender's Title Insurance policy is usually required when you are refinancing. If you have an Owner's Title policy already (you probably received it with your recorded deed) and can provide the title agent with a copy of it, you can very often get a reissue credit that will greatly reduce the amount of money this lenders title insurance policy will cost you. To save money on title insurance, compare rates among various title insurance companies. Ask what services and limitations on coverage are provided under each policy. In many states, title insurance premium rates are established by the state and may not be negotiable. Even if the premium rates are not negotiable, many of the title-related fees can vary from company to company and should be compared as well.
Is your credit history affected by a lien that is put on a house?
If there is a mortgage/equity loan involved,that loan will report on your credit history. The lien will report on the title of the house. A title search will be conducted if you are selling or refinancing the house.
