Refinancing: Title insurance
I’m looking at the Good Faith Estimate for my refi closing. The largest amount is for “Title services and lender’s title insurance”. Owner’s title insurance is $0 on the GFE and this appears to be optional. My understanding is that the owner’s title insurance I purchased 3 years ago when I bought the house will…
I’m looking at the Good Faith Estimate for my refi closing. The largest amount is for “Title services and lender’s title insurance”. Owner’s title insurance is $0 on the GFE and this appears to be optional.
My understanding is that the owner’s title insurance I purchased 3 years ago when I bought the house will still protect me after the refi. The only reason to purchase a new owner’s title policy would be to protect me against any new lien on the title in the past 3 years. Is that correct?
Also, is a tip to the title representative expected at a refi closing?
Do NOT use First American Title.
They have guaranteed BOGUS loans in the past.
Ibis:
Adam is correct. The “owner’s” title insurance policy you would have purchased at your house closing covers you as long as you or your heirs own the property. However, because you are obtaining a new loan, you need to purchase a “lender’s policy”, but the rate will be lower because your prior policy recently issued.
At the closing of the transaction, you would typically pay the title closer fee/gratuity ($150-$250), but it’s not necessary to give a tip on top of that. Feel free to reach out if you have any other questions.
You have to purchase new lender’s title insurance because the bank won’t close on the mortgage unless you do. It will protect the lender, you already have title insurance from your purchase. You can/will get a re-issue rate in NYS since you recently bought a title policy.
No need to tip as they usually get paid around 200-250 for a title close fee.
I can’t answer your question, but I have a friend that used to be a real estate broker, but switched to title insurance, so he’s very well informed, and I’m sure can help figure out the answer. Call Roy Fenichel at (212) 532-8686.
Tell him Jim Hill, from Urban Pioneering Architecture sent you.