Title Refinance (Lender’s Policy)

One Nation Title has refinance specialists among our staff who understand the intricacies, potential credits and how to expedite a refinance transaction from open to close in the shortest, least expensive and most convenient amount of time.

Do you qualify for a credit toward your new Lender’s Title Policy?

A credit is applicable when a loan is refinanced anytime within first seven years.  At One Nation Title, our experienced team is accustomed to calculating the credit and ensuring it is properly applied and documented.

Why obtain a new Lender’s Title Policy on a refinanced loan?

A mortgage professional can assist you in determining the advantages of refinancing your property. They may also advise you that the lender will require a new Lender Title Policy. To a lender, a refinanced loan is a new loan. The existing or old loan is paid off.  A Lender Title Policy only remains in effect during the life of the loan during the period for which it was issued.  Many, if not all lenders, will want to insure the title during the term of a new (refinanced) loan.  You may wonder, what could possibly have occurred with your property since you’ve owned it? Since the date you purchased and financed the property, it’s possible that a property owner may have received a mechanic’s lien, tax lien or child support liens; legal judgements could have been filed and recorded.  These are only a few of the items that may have occurred, the additional list is substantive.

What about my original Owner’s Title Insurance Policy?

When you bought your property, you purchased an Owner’s Title Policy and a Lender Title Policy. The Owner’s title policy stays in effect as long as you or your heirs own the property. When you refinance, your lender will often require that you purchase a new lender’s policy to protect its new security interest in the property. Thus, you are buying a policy to protect your lender, not a new Owner’s policy. There are many events that could result in a financial loss to a lender who has not required that a new Lender Title Policy be issued in association with the new (refinanced) loan.

For more information, please contact a One Nation Title office.