Refinance - Owner's Title Insurance Policy

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OldTown
Posts: 91
Joined: Thu Jan 15, 2015 1:01 am

Refinance - Owner's Title Insurance Policy

Post by OldTown »

When doing a refinance, do you folks normally purchase another owner's title insurance policy or do you just rely on the one you purchased when originally buying the house? We purchased the home in April 2017. I'm refinancing with Better and we are nearing the end of the process. The title company I selected included various charges but I didn't notice a charge for the owner's title policy. I asked the title company contact and she's asking me if I really need another policy since I just had one issued in 2017 when we first bought the home.

One wrinkle is that the home was titled in the name of our family trust in 2017 but now for the refinance, Better is requering that we take it out of the trust. I'm going to keep the title out of the trust for at least a few months following the closing of the refinance since I'm probably going to end up refinancing with Better again fairly soon and I don't want to waste money moving title to back into the trust for the current refinance when I'll just have to change it again shortly thereafter.

Thank you
presto987
Posts: 487
Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance - Owner's Title Insurance Policy

Post by presto987 »

No need for another owners policy. You already got one when you bought the house. Refinancing the mortgage doesn’t change ownership. I haven’t heard of anyone buying another owners policy with a refi (nor have I done it in multiple refis).
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cchrissyy
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Location: SF bay area

Re: Refinance - Owner's Title Insurance Policy

Post by cchrissyy »

CaptainMarvel wrote: Wed Aug 04, 2021 3:43 pm When doing a refinance, do you folks normally purchase another owner's title insurance policy or do you just rely on the one you purchased when originally buying the house? We purchased the home in April 2017. I'm refinancing with Better and we are nearing the end of the process. The title company I selected included various charges but I didn't notice a charge for the owner's title policy. I asked the title company contact and she's asking me if I really need another policy since I just had one issued in 2017 when we first bought the home.
the real question is, does your existing owners title policy continue as long as you own the house, or does it end with refinancing? the answer will be found in your policy document.

CaptainMarvel wrote: Wed Aug 04, 2021 3:43 pm One wrinkle is that the home was titled in the name of our family trust in 2017 but now for the refinance, Better is requering that we take it out of the trust. I'm going to keep the title out of the trust for at least a few months following the closing of the refinance since I'm probably going to end up refinancing with Better again fairly soon and I don't want to waste money moving title to back into the trust for the current refinance when I'll just have to change it again shortly thereafter.
this sounds wrong to me - not the part where they have to take it out of the trust but the part where you think it's a step for you to do and that there is any benefit to waiting. my understanding is the closing agent at the title company doing your refinance prepares a paper to take it out of the trust, and a paper to put it back in the trust, and both are processed that same day and at no extra cost or hassle for you.
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