Refinancing Can Save On Title Insurance
The most expensive cost associated
with home equity loan refinancing are title insurance premiums.
However, there is a chance you can bypass this steep premium - All
you have to do is take up a reissue rate. These lifesavers
give discounts up to 60% on title insurance premiums when
refinancing. And in some cases, they can be used for the
resale of homes.
Let's hypothetically say you obtained
your home equity loan five years ago. Since then, home equity
loan rates have dropped drastically and you want to refinance.
In order to refinance, a search of the public records on your
property must be done - and this results in a costly fee.
However, because a title search was done on your property five years
ago (relatively recent) you do not necessarily have to pay full
price for another title search and insurance policy.
The alternative is to take advantage
of a reissue rate, which the title industry offers in cases like the
hypothetical one we mentioned above.
It almost seems too good to be true.
Well, that is simply because it is not heavily promoted by title
insurance companies. Most insurance company representatives do
not even disclose that reissue rates are available or even exist.
In other words, if you don't ask, they won't tell (Sound familiar).
The good news is that if you ask - which you will since you know now
- they are obligated to tell.
Each title insurance policy will handle reissue rates
differently. Some will only allow for narrow time periods on
obtaining reissue rates, while others require documentation of the
previous title. There are also state laws involved with the
regulation of reissue rates. The best thing to do is ask your
mortgage lender questions, and have them provide the answers in
During refinancing, your mortgage
lender will be able to establish a reissue rate if it applies to
your specific situation. But, you must ask! Although
some brokers will tell you about them, in general they won't.
(They won't make as much money because the closing price will be
lower) Make sure you read through our entire home equity loan
refinancing guide, so that you can assimilate as much knowledge as
possible before meeting with a broker or lender.
Home Equity Loan Refinancing Guide