Why is a new title insurance policy required for refinancing my home?
A Title Insurance Policy insures one specific transaction. When that transaction ends (for example, when your existing mortgage is paid in full) the title insurance for that mortgage also ends. Your new mortgage lender will require a policy of Title Insurance, insuring that the lien of its new mortgage will be the “first lien” on your property, and that the folks who are signing the mortgage, at the time of closing, are ALL of the owners who have any interest in the property. If you are purchasing the property (not just refinancing it), you will want an Owner’s policy issued to you, by the title company at the same time, to insure that you really own the property, and that you have “clear title.” Money-Saving Tip: Phone us today and ask whether your transaction is eligible for the discounted re-issue premium rates under current New Jersey state insurance regulations.
