Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Do you always have to pay for title insurance on a refi?
Old 01-12-2008, 06:48 AM   #1
Full time employment: Posting here.
cardude's Avatar
 
Join Date: Feb 2006
Posts: 599
Do you always have to pay for title insurance on a refi?

I've never done a refi, and when poking around on the PenFed site I noticed that the title insurance estimate was $3700. I just bought my house 3 months ago and just paid for title insurance at closing, and I was wondering if there was a way to get around paying it again.

I've got a 6.5% rate now and am trying to get a 5.5% fixed for 20 years with no points.

Anyone done a refi with PenFed?
cardude is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-12-2008, 08:03 AM   #2
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
No refi with Penfed, but you can get a lower reissue rate for the title insurance if you use the same title company. That may not be in your control. The insurance is an insurance policy that runs in favor of the lender, so if you are not using the same lender, the new lender will need its own title insurance.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Old 01-12-2008, 08:19 AM   #3
Full time employment: Posting here.
cardude's Avatar
 
Join Date: Feb 2006
Posts: 599
Quote:
No refi with Penfed, but you can get a lower reissue rate for the title insurance if you use the same title company. That may not be in your control. The insurance is an insurance policy that runs in favor of the lender, so if you are not using the same lender, the new lender will need its own title insurance.
Ahhh, good point. Thanks Martha.

So what about telling my current lender what I'm thinking about with PenFed? Think they would try to match it? Anyone had any success with that?
cardude is offline   Reply With Quote
Old 01-12-2008, 11:46 AM   #4
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
If your home was purchased within the last few years, you may be entitled to a lender's title policy discount.
Spanky is offline   Reply With Quote
Old 01-12-2008, 11:55 AM   #5
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,290
Quote:
Originally Posted by cardude View Post
I've never done a refi, and when poking around on the PenFed site I noticed that the title insurance estimate was $3700. I just bought my house 3 months ago and just paid for title insurance at closing, and I was wondering if there was a way to get around paying it again.
Generally yes, you're going to have to pay for a title search and title insurance. The reason is that the lender wants to make sure you haven't:

A. Sold the house to someone else in the meantime but not recorded the sale.
B. Refinanced with someone else yesterday and that refi is not recorded yet.

Either event leaves the lender holding a very empty bag, so it's a CYA thing for the lender. They try to not make the same mistakes twice.
__________________
When I was a kid I wanted to be older. This is not what I expected.
Walt34 is offline   Reply With Quote
Old 01-12-2008, 12:57 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 6,098
the title insurance is only up to the last time a search was done. and covers backward in time . a lender wants to know if there were any liens filed on you since then as they have to take new risk for a new time frame. the old money the bank gave you was covered under the tiltle insurance from that point backward. the new money needs to have title insurance that they give you . what a racket ..... but non the less title insurance only covers what can be seen in the rear view mirror.
mathjak107 is offline   Reply With Quote
Old 01-13-2008, 12:20 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 17,194
I would check it out... my BIL did a refi within a year and the company accepted the policy with just an update which was very cheap...

Don't get hosed on this....
Texas Proud is offline   Reply With Quote
Old 01-13-2008, 07:23 PM   #8
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 334
As others have stated, you do not need to repurchase title insurance for yourself because you already have it and the new lender can get a reissue of the title insurance for much less money. There is really no way out of that if you want a mortgage. Websites quote their estimate of full blown insurance because that is what is used for Truth in Lending disclosures.
__________________
David

I get up at 7 yeah, and I go to work at 9. Got no time for livin yes I'm workin all the time. Seems to me I could live my life a lot better than I think I am. I guess thats why they call me the Working Man.
DJRR is offline   Reply With Quote
Old 01-14-2008, 02:14 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 6,098
well yes you have insurance it but no you dont have it. the lender is only covered from the date the origional policy was issued backward in time. if its 10 years later and a lender loans you money their is no coverage for the lender for the last 10 years on that existing policy . title insurance only protects what happened in time from the date the policy is issued, no events forward in time are covered. if a lawsuit levied a lien recently and someone else is now the first lien holder the bank can be out of luck without a new policy covering the past 10 years and a new search done. while yes you may get a discount on a new policy the lender definetly needs a new policy.
mathjak107 is offline   Reply With Quote
Old 01-18-2008, 08:23 AM   #10
Full time employment: Posting here.
cardude's Avatar
 
Join Date: Feb 2006
Posts: 599
Cool, thanks for all the info. I'm still working on it. I am able to get a 40% discount on the new title policy, but they are still requiring a new policy to be issued.

One refi proposal was strange I thought. The refi is considered a jumbo since it is over $417K this lender said, so they proposed doing a 2nd to cover the difference. Does that sound right? The rate on the 1st was 5.5% fixed for 20 which sounded OK (I'm at 6.5% now), but the rate on the 2nd (about 80K) would be 7.25% for 15 years, which is too high. The whole deal sounded way too complicated to me..............

Thoughts?
cardude is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Refi Question for all you Mortgage Gurus Patrick FIRE and Money 7 10-03-2006 10:19 PM
FIRE, How much do you pay for Health Insurance zcung FIRE and Money 32 06-13-2006 09:24 PM
Oddest book title... dory36 Other topics 6 03-06-2006 08:53 AM
Re: REFI Cut-Throat Other topics 13 11-25-2004 07:24 AM

» Quick Links

 
All times are GMT -6. The time now is 02:56 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.