Why is title insurance needed for refinance or second mortgage?
These are, in fact, new mortgages and a title insurance policy is required by the lender to grant your new loan. The original title insurance only covered the old mortgage – not a second mortgage or one that’s being refinanced. In fact, something may have happened between the time you purchased your property and the time you get your new loan that for which you have no protection. Do show us your original owner’s title insurance policy, as we may be able to reissue it at a lower rate if the insured values are similar. What’s a title search? The title is your legal proof of ownership. When you make your real estate purchase, we review the property’s history to see if the title is free and clear of defects before you close. We see if the deed was recorded properly and look for outstanding liens such as those that can arise from court judgments, federal tax estates, wills, and divorces. We also note any covenants, easements, or other matters that will affect your title. You’ll be presente
