Question: Why do I need to pay for title insurance & fees again when I refinance on a home I already own?
Answer: There are two types of title insurance policies available when financing or refinancing a home: lender policies and owner policies. These are typically offered as a bundle, but the lender policy is the only type of title insurance required in every purchase and refinance transaction. That’s because refinancing isn’t just an update to your original mortgage terms, it’s an entirely new loan that’s replacing your existing one. In the time between when you first bought your home and when you decided to refinance, your home’s title (a legal document verifying ownership of a property) could have been impacted by liens or other legal claims. Lenders require borrowers to pay for title insurance when refinancing to protect the terms of their new agreement.
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