“I’M REFINANCING MY HOME THAT I BOUGHT BACK IN 2002. SINCE I JUST PAID FOR TITLE INSURANCE FIVE YEARS AGO, DO I NEED TO PAY FOR IT AGAIN? ISN’T TITLE INSURANCE EFFECTIVE AS LONG AS I OWN MY HOME?”

The answer to that question lies in the two different types of title insurance you can get—owner’s title insurance and lender’s title insurance. Owner’s title insurance insures the property’s owner from past claims on a title (or from an error in filing, a lien placed on the property, etc.) and this type of policy is good for as long as the owner or else the owner’s heirs has an interest in the property. On the other hand, lender’s title insurance protects the lender from similar past claims but the important difference between owner’s and lender’s title insurance is that lender’s title insurance lasts for only the life of the current loan. Thus, when you refinance you will need to pay for title insurance (for the lender) again because your lender will require a new policy on the new mortgage. However, in some cases, you may be able to get a reduced rate on your premium for the new insurance policy. Many title companies can give you what is known as a “reissue rate” which is a discounted premium. Be advised that a reissue rate applies only if you’re using the same title company as you did for the previous loan and you’re refinancing within a short period of time (often only 3-4 years) following the previous loan. ∆