Question: I’m refinancing, why do I need new title insurance?
Answer: When you obtain a new loan, the lender will require title insurance. Even if you recently purchased your home, there are some problems that could arise with the title. For instance, you may have incurred a mechanic’s lien from a contractor who claims they were not paid or you may have had a judgment placed on your house for unpaid taxes. The lender wants to make sure their interest will be secured and the title to the property is clear.
You will not need to purchase new owner’s title insurance when refinancing. Owner’s title insurance is purchased at a one-time fee and lasts as long as you own the property.