Title Insurance and Refinancing Explained

So you were able to find a good interest rate and decided to refinance. Congratulations! There are a lot of things you’ll have to take care of when you refinance your home, and one of them is getting title insurance. But wait, you say, don’t I already have title insurance? You do, but you’re going to have to get a new lender’s title insurance policy. Learn more about refinancing and title insurance in our blog.


Do I need to get a new title insurance policy when I refinance?

Title Insurance and Refinancing

What’s the difference between lender’s title insurance and owner’s title insurance?

Owner’s title insurance is the title policy you buy for yourself when you close on your home. This protects you from third party claims on your home’s title. In the event that someone makes a claim, your title insurance company will handle it for you.

Lender’s title insurance protects your lender from losing their legal claim to your home. This is a separate policy from your owner’s title policy. It lasts as long as the lender has a lien on your home and the mortgage exists.

Why do I need to get a new lender’s title insurance policy?

When you refinance, you are still the owner of your home. So, you don’t need to get a new policy for yourself. You do need to get a new policy for your lender because you’re getting a new loan.

What if I’m using the same lender?

Even if you’re using the same lender, you still have to get a new policy in the amount of the new mortgage loan.

Can I use the same title insurance company?

Yes, you can use the same title insurance company to refinance as the one you used when you bought your home. Some title insurance companies offer a discount on the new lender’s policy when you use them again. This depends on the company and how long you’ve had you current mortgage. This is known as a re-issue rate.

When does the lender’s policy terminate?

The lender’s policy will terminate when you pay off your mortgage. Your owner’s policy will continue until you sell the home.

Real Estate Settlement Services from Colony Title Associates

Colony Title has been in business since 1995 and handles more than 2,000 real estate closings per year. If you have any questions or would like to speak to a representative about closing, please give us a call at 410-884-1160 or visit our website for more information.

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