I am refinancing my mortgage. Do I need to purchase a new title insurance policy?


For an owner's title insurance policy, your previous title insurance coverage is sufficient. Since you are still the owner of the property, the coverage of that policy is still effective.

However, when you refinance your mortgage, your lender will require that you get a new lenders title insurance policy. The first lenders title insurance policy will have been terminated when you paid off the mortgage.

The reason why a new title insurance policy is required is that the bank would like to make sure that there are no liens on the property and that, between the time you first mortgaged the house up to the time that you are applying for refinancing, no title issues have arisen that will endanger or put into question your ownership of the property.

The good thing is that when you buy the new title insurance policy from the same insurance company, they will issue the new policy at lower "reissue" rates.

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