Refinancing: Do You Still Need Title Insurance?

People refinance their homes for a lot of reasons. Most commonly, refinancing is used to readjust the terms of the mortgage loan (such as shortening or extending it) or to get a lower interest rate. One thing most people don't think about when refinancing, though, is the impact it will have on their title insurance policies. If you're thinking about refinancing your home at the Lake of the Ozarks, here is some important information to keep in mind.

Refinancing - It's Still A Home Loan

When you refinance your home, you are essentially taking out a new loan to pay off the original loan in full. Because you are taking out a brand new loan, you will have to undergo the same process (and cover the same costs) that you did when you originally purchased your home. For example, you will probably need to...
  • Purchase a professional appraisal of your property
  • Cover the closing costs associated with the loan
  • Purchase a lender's title policy to protect the lender
Your lender will provide you with an estimate of the total closing costs, which will include an estimate for title insurance. Even though the loan policy protects the lender, you have a right to select which title company is used - so please keep us in mind!

Refinancing & Lender's Policies

Because refinancing means taking out a brand new loan, lenders will require a new lender's policy to protect their investment in your property. You may have been the sole owner of your property since you originally purchased it, but that does not mean that your property is free from new title risks. For example, you may have taken out a secondary home loan or you could have had various liens placed against your property. All lenders require lender's policies to protect them, and the new loans used to refinance homes are not any different.

Refinancing & Owner's Policies

Unlike the lender's policy, owner's title policies protect you, the owner, and your investment in your property. The lender may change during the refinancing process, but you will remain the owner of your home. Since the home ownership will not change, you will not need to purchase a new owner's policy. 

Questions? Don't Be Afraid To Ask Arrowhead Title, Inc.!

Title insurance can seem confusing to many people. If you have questions about title insurance policies and how they will impact the process of refinancing or buying a home at the Lake of the Ozarks, don't hesitate to reach out to the team at Arrowhead Title. With over thirty years of providing title insurance at the Lake of the Ozarks, we are ready and able to help you with all of your title insurance needs.

 The Lake of the Ozarks' Most Trusted Title Company
Location: Lake Ozark, MO 65049, USA

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