As interest rates drop, you might be considering refinancing with a new lender to lock in a better rate. Here's how title insurance works during this process:
When you close on a refinance, your lender’s policy from the original purchase ends, but your owner’s policy remains intact to protect you as the homeowner. 👍
A new lender’s policy will be issued for your new lender to ensure their investment is secured. The great news? The title premium is cut in half for refinances! Instead of the $4.25 per thousand on a purchase, the refinance rate is only $2.25 per thousand. Title insurance ensures your new lender is in first lien position, protecting them if anything like a foreclosure happens. It’s a necessary step for securing your refinance, and at a reduced cost compared to your original purchase. 💰🏡
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