If you need to refinance your home, a lower interest rate will be able to save you a significant amount of money. Refinancing your home loan will need to be handled by a title insurance company to ensure all policies and cash moves hands to the correct places. There are typical lender fees you will pay along with standard closing costs, service fees, and other expenses. Security Title of Davis County is here to help you with your loan refinance.
Why do Lenders Need Title Insurance?
Lenders need title insurance to protect their investment. Even if you have been a good borrower and you have always paid on time, lenders need to protect their investment. When a loan is refinanced, title insurance is purchased to protect the lender’s investment against title defects.
What Happens to Homeowners Policies?
When you originally purchased your home, you purchased a homeowner’s title policy. The homeowner’s policy stays in place as long as you own the home. When you refinance the loan, lenders normally require the purchase of a new lender’s policy to protect its security interest in the property. Since the time the original loan was made, homeowners often take out second trust deeds on the house or could have liens and legal judgments recorded against them. An unprotected lender could end up with serious financial losses when such events occur. Title defects can cause problems for lenders, which is why a new lender’s policy is standard each time you refinance the home as it helps to adequately protect the lender.
Since there are specific details related to liens and judgments, we recommend contacting our Davis County title company today to discuss your title needs, 801-825-1313.
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I have worked with Security Title for over ten years. They have closed hundreds of loans for me. They are extremely knowledgeable, thorough, and above all, friendly. I recommend them for any and all title needs. My customers love them too! Simply the best!!!!